Slide on Bangladesh Bank

1. Welcome to
Our Presentation on
An Overview of Central Banking:
Bangladesh Bank

2. Presented to:
Ayesha Akhter
Assistant professor.
Department of Finance.
Jagannath University.
Presented By:
Group No: 9 (9th batch)
Department of Finance
Jagannath University.

4. CONCEPT OF CENTRAL BANK
Origins
 Prior to the 17th century most money was commodity money,
typically gold or silver. However, promises to pay were widely
circulated and accepted as value at least five hundred years
earlier in both Europe and Asia.
 The Song dynasty was the first to issue generally circulating
paper currency, while the Yuan Dynasty was the first to use
notes as the predominant circulating medium.
 In 1455, in an effort to control inflation, the succeeding Ming
Dynasty ended the use of paper money and closed much of
Chinese trade.
 The medieval European Knights Templar ran an early prototype
of a central banking system, as their promises to pay were
widely respected, and many regard their activities as having laid
the basis for the modern banking system.

5. FEATURE OF CENTRAL BANK
 Dealing In Money: They accept deposit from public such as, current,
savings and fixed. So bank are basically dealer in money.
 Agency: They provide variety of agency service, fund transfer, credit
cards, cheque clearing, bill transfer etc.
 Credit Creation: Bank can create credit. It is an additional
function of bank and unique feature of banking.
 Commercial Value: The nature of business of bank is
commercial. They pay interest on deposit.
 Withdraw-able deposit: The deposit made by the customer
can be withdrawn by cheque, draft or otherwise.

6. OBJECTIVES OF CENTRAL BANK
 Central Bank control these items:
 Inflation
 Employment
 Stability in markets
 Interest rates
 Exchange Rates.

7. Role of Central Bank in
Socio-economic Development
The aim of the central bank in a developing country is
the maintenance of a rising level of production,
employment and real income in the country.
For this, they perform these functions-
 Proper Adjustment between Demand for & Supply
of Money
 A Suitable Interest Rate Policy
 Debt Management
 Credit Control
 Creation and Expansion of Financial Institution
 Solving the Balance of Payments Problem

8. HISTORY OF BANGLADESH BANK
 After the Liberation War and the eventual independence of
Bangladesh, the Government of Bangladesh reorganized
the Dhaka branch of The State Bank of Pakistan as the
central bank of the country, naming it Bangladesh Bank.
 This reorganization was done pursuant to Bangladesh
Bank Order, 1972, and the Bangladesh Bank came into
existence retroactively from 16 December 1971.

9. VISION AND MISSION OF
BANGLADESH BANK
 Vision:
 Poverty eradication of Bangladesh
 Maintain price stability and financial system
 Competent and committed professionals of high ethical standards.
 Mission:
 Formulates monetary and credit policy
 Managing currency issue and regulating payment system.
 Managing foreign exchange and regulating foreign exchange.

10. ORGANISATION
 The bank's highest official is the governor (currently Fazle
Kabir). His seat is in Motijheel, Dhaka. The governor
chairs the board of directors. The executive staff, also
headed by the governor responsible for the bank's day-
to-day affairs.
 Bangladesh Bank also has a number of departments
under it, namely Debt Management, Law, and so on, each
headed by one or more general managers.
 The Bank has 10 physical branches: Motijheel,
Mymensingh, Sadarghat, Barisal, Khulna, Sylhet, Bogra,
Rajshahi, Rangpur and Chittagong; each is headed by a
general manager. Headquarters are located in the
Bangladesh Bank Building in Motijheel, which has two
general managers.

11. HIERARCHY(Executive staff)
Governor
Deputy
Governor
Executive
Director.
Economic
analyst
Deputy
Governor
Executive
Director.
Economic
analyst
Deputy
Governor
Executive
Director.
Economic
analyst
Deputy
Governor
Executive
Director.
Economic
Analyst

12. CORE POLICIES OF BANGLADESH
BANK
 Monetary Policy
The main objectives of monetary policy of the Bangladesh Bank
include:
 Internal and external price stability
 Sustainable growth and development
 Economic and efficient use of resources
 High employment
 Stability of financial and payment system

13.  market of Bangladesh Bank declares the monetary policy by issuing
Monetary Policy Statement twice a year (in January and July). The
tools and instruments for implementation of the monetary policy
in Bangladesh are bank rate, operations, repurchase agreements
and reverse repo, and statutory reserve requirement.

14. FUNCTION OF BANGLADESH BANK
 Supervision of the banking system.
 Advising the government on monetary policy
 Issue of banknotes
 Acting as banker to other banks
 Acting as banker to government
 Raising money for the government
 Controlling the nation’s currency reserves

15. FUNCTION OF BANGLADESH
BANK
 Credit control
 Money market control
 Foreign exchange control
 Determination of foreign exchange rate
 Maintaining foreign exchange reserve
 Keeping the gold standard
 Maintain of government’s fund

16. FUNCTION OF BANGLADESH
BANK
 Received and transfer of money
 Keeping the government account
 Foreign financial transaction
 Loan issue and supervision
 Maintenance of relationship with foreign
bank .
 Counselor and representative of government
 Implementation of financial policy of
government

17. THANK YOU