The economy of Bangladesh is gradually developing and moving towards well-organized schemes. This is a gainful way for savings and comprehensive monetary expansion. Non-bank monetary organizations, small capital providing clubs, share market investments, scheduled as well as non-scheduled banks play an important role in the economical development of Bangladesh.
There are a total of 47 banks in Bangladesh, each with several branches in different cities and districts. Considering these branches and sub-branches, there are 7,664 banks available in the country.
The main three zones that act as the backbone of the economy are the money market, the small finance providing clubs and the investment provider groups. The Money Market completely depends on the Bangladesh bank; whereas the investment policy providers mainly consist of sanctuary markets, insurance, retirement funds and provident funds. The small finance providing clubs are self dependent.
According to the Act of Foreign Investment of the 1980’s, it is always possible to send back the savings, extra incomes, easy taxation and others. It is very easy for foreign firms to send back or save money in the country’s banks without any problems and complications. One would only need proper certification and records.
From numerous surveys, it has been observed that the economical growth and number of foreign investors has been continuously increasing in the last few years. Bangladesh is gradually becoming strong in the field of economy with a development rate of about six percent per year. Finance experts that this rate will improve faster in the upcoming years hope it.
At the time of independence in 1971, the central bank of Pakistan was the State Bank of Pakistan, with two branches and seventeen other Commercial Banks. Among these seventeen banks, two were based in Bangladesh.
Immediately after Independence, the Government of Bangladesh made all Commercial Banking Schemes nationalized. After that, the banks were all reconstructed and renamed. Today, foreign banks are always welcome in Bangladesh for investment in order to make their business growth and development. In comparison to the past, the entire banking sector has become more secure, stable and profitable.
The central bank of the country is the Bangladesh Bank. The important functions of this bank are to balance currency policies, store and control economy of foreign banks and to service money facilities, such as easy money transactions, ATM, credit cards and much more.
Bangladesh Bank is completely associated with the Government and plays a vital role in the Government’s money plans. Bangladesh Bank always executes monetary plans of the Government. The head office of Bangladesh Bank is situated in Dhaka. There are a total of nine functional branches of the bank. The head office and two branches are located in Dhaka, whereas the remaining branches are located in Rajshahi, Bogra, Barisal, Sylhet, Chittagong, Rangpur and Khulna. Apart from these, there are more banks and finance options available in Bangladesh, which includes the Cooperative banks, scheduled and non-scheduled banks, the Investment Cooperation of Bangladesh (ICB), Dhaka Stock Exchange (DSE), Investment Cooperation of Bangladesh (ICB), Securities and Exchange Commission (SEC).
There are numerous investment prospects available in Bangladesh. The country provides a legal security to the private foreign funds. Bangladesh is always moving towards enlargement and progress. The central bank provides many facilities, such as easy and fast transaction by initiating automation project which provides credit information quickly. In short, the Banking System has made a revolutionary development which has proven to be strong.