Establishment
Bangladesh Bank is a bank whose essential duty is to
maintain stability of the monetary standard.
Bangladesh Bank, the central bank of the country, was
established as body corporate by the Bangladesh Bank
Order 1972 (P.O. No. 127 of 1972) with effect from 16th
December 1971. ( retros activities)
A Short Profile
Name : Bangladesh Bank
Headquarter : Motijheel, Dhaka, Bangladesh
Established : 1972
Governor : Mr. Fazle Kabir
Reserves : US $ 30 billion
Web site : www.bd.org.bd
Monogram :
Mission
Formulating monetary &
credit polices
Managing currency
regulating payment system
Managing foreign exchange
& regulating foreign
exchange
Vision
Poverty eradication in
Bangladesh
Maintain price stability &
financial system
Being competent and
committed professionals of
high ethical standards
Department of Bangladesh Bank
Human Resources Department (HRM)
Monetary policy Department
Common Service Department
Foreign Reserve & Treasury Management
Banking regulation & Policy Department
Loan Management Department
Foreign Exchange Policy Department
Security Management Department etc.
Features of Bangladesh bank
Single Organization/Unique Organization
Legal Entity
Nature of Ownership
Difference in Objectives
Note Issue & Control
Maintainer of Money Value
Government Control
Guardian of the Money Market
Lender of the Last Resort
Controller of Foreign Exchange
Public Welfare
Maintenance of Economic Stability
Function of Bangladesh Bank
Formulation and implementation of monetary and credit
policies.
Regulation and supervision banks and non-bank financial
institutions, promotion & development of domestic financial
markets.
Management of the country’s international reserves.
Issuance of currency notes.
Regulation & supervision of the payment system.
Continue
Acting as banker to the government.
Money laundering prevention.
Collection and furnishing of credit information.
Implementation of the Foreign Exchange Regulation Act.
Managing a deposit insurance scheme.
Board of Directors
Thegeneral superintendence and direction of affairs
and business of the Bank are entrusted to a nine
members (Board of Directors) which consists of the
Governor as chairman, a Deputy Governor, three
senior government officials and four persons having
experience and proven capacity in the fields of
banking, commerce, trade, industry or agriculture - all
nominated by the government.
Objectives of Board of Directors
a) To manage the monetary and credit system of Bangladesh with
a view to stabilizing domestic monetary value.
b) To regulate the issue of the currency and the keeping of
reserves.
c) To promote and maintain a high level of production,
employment and real income in Bangladesh; and to foster growth
and development of the country's productive resources for the
national interest.
d) To preserve the par value of the Bangladesh Taka.
Bangladesh bank policies
Bangladesh Bank (BB), as the central bank, has legal authority
to supervise and regulate all banks and non-bank financial
institutions. It performs the traditional central banking roles of
note issuance and of being the banker to the government and
banks.
Given some broad policy goals and objectives, it formulates
and implements monetary policy manages foreign exchange
reserves and lays down prudential regulations and conduct
monitoring thereof as they apply to the entire banking system.
Bangladesh bank policies
Itsprudential regulations include, among others: minimum
capital requirements, limits on loan concentration and insider
borrowing and guidelines for asset classification and income
recognition.
The Bangladesh Bank has the power to impose penalties for
non-compliance and also to intervene in the management of a
bank if serious problem arise. It also has the delegated authority
of issuing policy directives regarding the foreign exchange
regime
Policy Rates (Date- 13-08-2020)
Policy Rates %
Repo Rate 4.75%
Special Repo Rate 7.75%
Rev Repo rate 4.00%
Bank Rate 4.00%
Treasury Bill %
91 days T. bill 4.40%
182 days T. bill 4.89%
364 days T. bill 5.19%
Policy Rates (Date- 13-08-2020)
Reserve Ratios %
1. Traditional Banking
SLR (Statutory Liquidity Reserve) 13%
CRR (Cash Reserve Ratio) 4%
2. Islamic Banking
SLR 5.5%
CRR 4%
