History of Banking in Bangladesh

After the Liberation War of 1971, the Dhaka branch of “State Bank of Pakistan” was immediately renamed ‘Bangladesh Bank’ and marked as the Central Bank of Bangladesh. There were 17 other large banks, 14 smaller commercial banks and 3 foreign banks in the country. At the same time, all banks were nationalized and renamed. Foreign banks were given permission to continue their operation. The insurance companies were also turned into state-owned companies. The government understood their potential to the economy of the country.
As the government focused more on agriculture in the late 70’s and the 80’s, the banks changed their lending strategies keeping the agriculture sector in mind. Bangladesh Krishi Bank, a bank specializing in the sector of agriculture, made sure that loan opportunities for farmers and fishermen were increased.

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