Functions of Central Bank.

The essential function of a central bank is the maintenance of the stability of the monetary standard. Mainly central bank was introduced to establish economic discipline in a county through formatting, directing & maintaining banking systems and financial market. Thus, all the necessary activities to create well disciplined economic environment are performed by the central bank. The functions of central bank are expressed with two ways :

A. General functions.

B. Special functions. 

A. General functions :

The following general functions are performed by all the central bank of this world -

1. Issue of coins and notes :

Central bank yet enjoy a complete  individual or monopoly right of note issue on behalf of country. It preserves gold, silver, foreign coins or government security of particular price standard to issue coin & notes. Generally to issue notes, central bank is to preserve 30% reserve of issuing prices.

2. Function as a government agent :

Central bank acts as governments bank. This is why the relation between govt. & itself is more cordial. It performs the following functions as governments agent.

i) Collection of money and bills :

Central bank collects various receivable money & bills of government from different sources.

ii) Maintenance of fund :

The duties of central bank are to perfectly  maintain and reserve the subsisted funds of govt. & the funds obtained  from various sources.

iii) Acts as agent :

On behalf of government it signs & implements contract, performs financial transactions with various persons & organizations within the country & in foreign. Moreover, it acts as agent of government to pay owes & to collect receivable money from various parties.

iv) Advising :

It gives advice &  guidelines to government on foreign trade, financial  principle and prize level. 

v) Revenue collection :

It conserves government revenues collecting from various sources. Central bank keeps a main role to collect govt. revenues.

vi) Transfer :

This bank transfers money and bills from one place to another in county and foreign on necessity of government.

vii) Money payment :

Government  pays all kinds of due with the help of central bank.

viii) Maintaining account :

On behalf of government the duties & responsibilities of this bank are to accumulate, maintain & preserve the accounts of finance collected from different sources.

ix) Issuing loan :

It performs as the huge short term  loan providing organization of government in the financial  crisis moment.

x) Development of relationship :

It develops the better relationship with various countries and organizations such as world bank, IMF, ADB, IDB by continues communication and translation.

xi) Implementation of government monetary policy :

Central  bank in all the countries act as the fiscal agent, banker & advisor in all important financial matters to the governments of their countries.

3. Custody of banks reserve :

Central bank financially reserves a part of collected deposits of another banks to aim at financial stability & credit controlled.

4. Maintaining foreign exchange reserve :

The central bank maintains reserve of international currencies for meeting various requirements of foreign exchange.

5. Lender of the last resort :

Its capacity as bankers bank and the general acceptance of responsibility of lender of last resort.

6. Responsibility as clearing house :

It centrally performs the activities of clearing house in particular time at particular place to settle the daily transactions among the various banks and  the transactions created through various documents and instruments  issued on each other.

7. Credit control :

Commercial bank provides loans for gaining huge profits. But if it is placed in any imbalance condition, then central bank controls credits to keep it on perfect balance positions.

8. Functions as a banker of banks :

Doing the following activities,  central bank do the functions as a banker of banks.

i)  Lawful and financial Assistance in incorporation of commercial and specialized bank.

ii) It includes all commercial banks and financial  institutions into Scheduling so that they should obey its indicated rules and guidelines moreover financial market should be controlled  easily.

iii) Assistance in credit control by changing  laws & principles.

iv) Supervision of loans provided by the various banks of a country.

v) Collection of various information regarding to financial markets and  regularly supply these to the banks.

vi) Audit of accounts maintained into various branches of various banks in a country.

vii) On behalf of commercial banks, it shows itself as a agent in financial  transactions with another banks, financial institutions & traders of own country & foreign.

viii) This bank gives advice to commercial banks on deposit receiving, investment, loan providing  & collection.

ix) Central bank Assists in development of techniques and  introducing  new techniques  for improving the standard of banking service.

B. Special functions :

There are many special functions except general functions are performed by the central bank of every country.

1. Agricultural development.

2. Development of trade & commerce.

3. Industrial development.

4. Development of manpower.

5. Proper utilization of natural resources.

6. Continuing economic research.

7. Information collection and supply.

8. Preparation & publication of report as a guardian of financial market.

9. Keeping price stability.

10. Development of natural resources.

11. Development of hill tract region.

12. Poverty elimination.

13. Development of production project.

14. Housing development.

15. Financial institutions development.

16. Development of management of foreign remittance.

At last it is said that, the  above functions are performed almost by all the central banks of several countries of the world although there may be  variations in degree of functions.

Importance / Necessity / Significance / Role of Central Bank.

One of the objective of central bank is socio-economic development through formatting a balance economic environment. This bank directly helps to the government of a country by issuing note,  formatting and controlling  money market and banking system. The main objective of central bank is to develop the economy through economic discipline establishment in a country. Central Banks have generally played an important role in the establishment and working of development banks. The necessity and role of central bank are given below:

1. Issuing or decreasing note &and coin for translation more easy in market.

2. Prevention of money values.

3.Credit control.

4. Establishing government control.

5. Maintaining price stability.Beside

6. Development of internal & foreign trades.

7. Maintaining foreign exchange reserve.

8. Implementation of plan.

9. Control of foreign exchange.

10. Control of banking system of a country.

11. Control of money market.

12. Equitable & balanced distribution of wealth.

13. Development of manpower.

14. Creating employment.

15.development of living standard.

After above expression it is said that, always central bank should aim at the promotion of economic activities of a country, though it also performs so.

Purpose / Objectives of Central Bank.

A central bank that gives money related and managing an account administrations to its nation's administration and business keeping money framework, and also actualizing the legislature's financial arrangement and issuing currency. It performs to make financial and monetary approach and to control the money supply and interest rate. The objectives and purposes are given bellows with detail-

1. Directing and conducting  the country's financial policy by impacting cash and credit conditions in the economy in quest for full job and stable costs.

2. Directing and controlling banks and other essential budgetary foundations.

3. Keeping up the security of the money related framework.

4. Keeping up the security of containing systemic danger that may emerge in money related markets.

5. Giving certain budgetary administrations to the administration, money related organizations, and outside authority foundations.

6. Assuming a noteworthy part in working and administering the country's instalments frameworks.

7. to manage the nation's money supply or monetary policy through active duties.

8. Managing interest rates.

9. Setting the reserve requirement.

10. Acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis.

11. Central banks usually also have supervisory powers, intended to prevent bank runs and to reduce the risk that commercial banks and other financial institutions engage in reckless or fraudulent behaviour.

12. Central banks in most developed nations are institutionally designed to be independent from  political interference.

13. Still, limited control by the executive and legislative bodies usually exists.

14. To guarantee the well-being and soundness of the country's managing an account and money related framework.

15. To secure the credit privileges of customers.

16. Economic development.

17. Public welfare.

18. Controlling of bank system.

19. Equitable distribution of wealth.

20. Performing duties of clearing house.

Features & Characteristics of Central Bank.

A government established organization in charge of controlling the country's cash supply & credit conditions & supervising the money related framework particularly in business banks & another storehouse organizations. The primary  characteristics of a central  bank are given as underneath -

Note Issue:-

The fundamental highlight of a central  bank is the issue of money notes in the nation. The Central bank controls the volume of cash in the nation as per prerequisites of business and the overall population.

Investor to The Govt.:-

The Central bank is the broker to the legislature furthermore goes about as its fiscal specialists. The administration keeps its adjusts with it free of investment. It gets and disburses the installment for the legislature furthermore makes advances to the government .

Investor's Bank: – 

The Central bank additionally goes about as the financier to the booked and different banks. It is the caretaker of the money stores of the business banks. Each timetable bank is obliged to keep up at the very least 5% of its aggregate request and time liabilities with the Central bank. Against these commitments, the booked banks are qualified for advance and re-discount offices from the bank. This store with the focal is considered tantamount to fluid money. The provision of store empowers the national bank to have control over the credit production of the business banks.

Loan specialist of Last Resort: –

The Central bank is the moneylender of final resort. It keeps up a nearby association with the business banks. It assumes the liability of meeting straightforwardly or by implication, all sensible requests for convenience from the business banks, and other credit organizations under specific terms and conditions.

Controller of Credit: –

One of the critical capacities of Central bank is to direct and control the credit in the nation as indicated by the differing monetary circumstances. Bank rate approach and open business operations are the direct techniques for national bank for controlling credit. It can decline or build hold degree & control the advances arrangement of business banks.

Adviser to The Govt.:- 

It additionally acts an adviser to government on money related and financial matters. It gives a specialist conclusion on matters identifying with financial advancement or to fiscal states of the nation.

Clearing House: -

The Central bank goes about as the clearing house for different banks. Under this capacity the Central bank encourages the settlement of bills and checks of different banks by setting off requests of one against other and in this way helps the working of the saving money framework so easily without genuine money exchanges.

Controller of Foreign Exchange: –

The Central bank is in charge of the administration of outside trade & keeping up outer estimation.

One system for all courses of action -

It offers a complete arrangement which handles all benefit classes, all businesses and all monetary business sector forms continuously inside a solitary framework preconfigured for national banks. This minimizes lapse rate as information streams easily from front to back office and accordingly likewise decreases operational danger.

Cutting edge client interface -

It incorporates a work-space devoted to save administrators and a dashboard application which conveys all reporting data in one window, paying little respect to its source. Clients can make numerous perspectives, indicating data from over the whole framework. The dashboards saddle an extensive variety of effective highlights including turn tables, channels, styles and outlines, all with an easy to use 'move and customize' manufacture ability. Clients can construct their own ongoing perspective of indispensable information identifying with all parts of their venture operation, permitting them to settle on fast choices, engaging them with data to adequately deal with the business.

Better speculation returns - 

It offers a stage that is continually advancing to bolster new capacities and instruments, empowering the broadening of portfolios. It minimizes operational dangers and empowers execution estimation through a strong framework that has the capacity dissect, process and give an account of a perpetually extending scope of instruments.

Propelled danger & execution administration - 

It offers coordinated propelled danger administration structure incorporates emphasizes especially suited for central Banks market operations.

Administrative agree ability -

Its consistence apparatuses, for example, point of confinement observing, give an abnormal state of inner consistence without fundamentally bargaining effectiveness. Likewise,. Its Suite bolsters outside administrative systems presented by such administrative bodies as ESCB, BIS and World Bank.

Execution estimation and attribution - 

It Suite offers GIPS agreeable execution estimation and attribution, in addition to altered pay execution attribution. These capacities encourage dynamic store and resource administration and empower the presentation of new instruments effortlessly, while as yet keeping up characterized danger parameters.

Cutting edge security – 

The framework offers far reaching security emphasizes through an advanced web interface Security Centre empowering the administration of various client records, bunch progressions, capacity pecking orders, and also part based authorizations. Wall street Suite likewise incorporates propelled confirmation instruments and full audit-ability through complete logging of each activity in the framework.

Lessened expense of possession -

It ensures the accessibility of standard interfaces and offers a complete arrangement. Running normal business forms inside a solitary framework offers versatility which is unmatched by best of breed arrangements.

Processing plant methodology -

Paying little heed to the extent of the national bank, our industrial facility methodology gives a productive and organized technique for arrangement conveyance. The industrial facility methodology takes into consideration full on location perusing, with exact framework design opened site. Subsequently, the banks' interior assets are not bolted into the undertaking and there is a critical decrease in the aggregate expense of the execution. This demonstrated methodology minimizes the general effect on the bank and decreases the weight on assets and usage time.

*Guardian of money market.

* Legal entity.

* Single organization.

Definition of Central Bank.

A central bank that gives money related and managing an account administrations to its nation's administration and business keeping money framework, and also actualizing the legislature's financial arrangement and issuing currency. It performs to make financial and monetary approach and to control the money supply and interest rate. The  various writer's definition of central bank are as follows:

"Central bank is a bank which holds the main body of bank reserves and which is the ultimate reservoir of credit". ( C J Woelfel )

"A central bank is a bank which controls credit". ( W A Shaw)

"Central bank is the leader of the last resort". ( Prof. R G Hawtray )

"A central bank is a bank which is enjoying the sole or the principal right of note issue and acting as the government's banker and agent."( M H Dekock )

"Central bank occupies a central or pivotal position in the monetary and banking structure of a country."( M N Mishra )

"A central  bank is a top controlling banker for all other banks of the country." ( S N Maheshwari )

At last it is said that, central bank is the main bank of each country. It issues note, controls loans and money market that means, finance and banking are directed in all countries  by the supervision and monitoring of central  bank.

Origin / Background / Evolution of Central Bank.

Preceding 17 century most cash was product money, normally gold or silver. In any case, certifications to pay were for the most part coursed and recognized as worth no under five hundred years earlier in both Europe and Asia. The Song Organization was the first to issue all around circumnavigating paper coin, while the Yuan Convention was the first to use notes as the extraordinary streaming medium. In 1455, with a final objective to control extension, the succeeding Ming Organization completed the usage of paper money and close a great deal of Chinese trade. The medieval European Knights Knight ran an early model of a central dealing with a record system, as their assurances to pay were extensively respected, and various see their activities as having laid the reason for the present sparing cash structure.
As the first open bank to "offer records not particularly convertible to coin", the Bank of Amsterdam made in 1609 is thought to be the trailblazer to cutting edge central banks. The central bank of Sweden ("Sveriges Riksbank" or just "Riksbanken") was built up in Stockholm from the remaining parts of the failed bank Stockholms Banco in 1664 and offered a clarification to the parliament ("Riksdag of the Domains"). One piece of the Swedish central bank was offering money to the government.

Bank of England

The fixing of the Bank of England Contract (1694). In England in the 1690s, open stores were rare and were relied upon to support the constant conflict with France. The credit of William III's lawmaking body was so low in London that it was unbelievable for it to get the £1,200,000 (at 8 percent) that the organization required. With a particular deciding objective to incite enrollment to the credit, the supporters were to be merged by the Representative's name and Association of the Bank of Britain. The bank was given specific responsibility for council's balances, and was the fundamental compelled danger organization allowed to issue banknotes. The banks would give the organization cash (bullion) moreover issue notes against the governing body securities, which can be credited yet again. The £1.2 Mn was raised in 12 days; half of this was used to remake the Maritime power.

Bank of England, the model on which most front line national banks have been based, was prepared by Charles Montagu, first Earl of Halifax, in 1694, to the course of action which had been proposed by William Paterson three years earlier, yet had not been followed up on. He proposed a credit of £1.2 Mn to the governing body; thus the supporters would be joined as The Delegate and Association of the Bank of Britain with whole deal sparing cash advantages including the issue of notes. The Royal Assent was surrendered on 27 July through the Tonnage's area Exhibition 1694.

The Bank of England, made in 1694. Though some would show the 1694 establishment Bank of England as the start of central dealing with a record, it didn't have the limits as a bleeding edge national bank, specifically, to deal with the national's estimation money, to back the assembly, to be the sole affirmed dealer of banknotes, and to limit as a 'moneylender of last resort' to banks persevering through a liquidity crisis. The propelled Central bank grew step by step through the eighteenth and nineteenth several years to accomplish its present structure.

Regardless of the way that the Bank was at first a private association, before the eighteenth's end century it was logically being seen as an open force with civil commitment toward the upkeep of a sound budgetary system. The money crisis of 1797, brought on by froze donors pulling back from the Bank provoked the organization suspending convertibility of notes into specie portion. The bank was soon rebuked by the bullionists for realizing the swapping scale to tumble from over issuing banknotes, a charge which the Bank denied. Before long, it was clear that the Bank was being managed as an organ of the state.

Henry Thornton, a shipper agent and cash related researcher has been depicted as the present's father day Central bank. An adversary of the real bills statute, he was a bullionists' watchman position and a gigantic figure in financial speculation. Thornton's approach of monetary improvement anticipated the theories of Knut Wicksell as for the "consolidated system which restates the Sum Theory in a theoretically sensible structure". As a response 1797 cash crisis, Thornton wrote in 1802 An Enquiry into the Nature and Effects of the Paper Credit of Great Britain, in which he battled that the addition in paper credit did not bring about the crisis. The book moreover gives a point by point record of the English cash related system and an organized examination of the courses in which the Bank of England should act to check instabilities in the pound's estimation.

Walter Bagehot, a convincing researcher on the budgetary piece of the national bank. Until the mid-nineteenth century, business banks had the limit issue their own specific banknotes, and notes issued by basic keeping cash associations were for the most part available for use. Various consider the national's origination bank to lie with the Bank's segment Authorize Exhibition of 1844. Under this law, authorisation to issue new banknotes was limited to the Bank of Britain. Meanwhile, the Bank of England was kept to issue new banknotes just in case they were 100% maintained by gold or up to £14 million in government commitment. The Showing served to confine the supply of new notes coming to dispersal, and gave the Bank of England an effective controlling foundation on the printing of new notes.

The Bank recognized the piece of 'advance authority of last resort' in the 1870s after criticism of its terrible response to the Over end-Gurney crisis. The editorialist Walter Bagehot created an enticing take a shot at the subject Lombard Street: A Money's Portrayal Business, in which he supported for the Bank to legitimately transform into an advance pro of last resort in the midst of a credit mash (here and there insinuated as "Bagehot's declaration"). Paul Tucker communicated the declaration as takes after:

"to dismiss free for all, central banks should advance early and wholeheartedly (ie unbounded), to broke up firms, against incredible security, and at 'high rates'". Spread as far and wide as could be expected under the circumstances Central banks were made in various European countries in the midst of the nineteenth century. The Second's War Coalition incited the Banque's creation de France in 1800, with a finished objective to upgrade the overall public financing of the war. Yet national banks today are generally associated with fiat money, the nineteenth and mid twentieth many years Central banks in a huge bit of Europe and Japan became under the all inclusive most abnormal amount, elsewhere free keeping cash or coin gets ready to leave were more regular starting at this point. Issues with folds of banks in the midst of downturns, in any case, incite more broad sponsorship for central banks in those nations which did not up 'till now have them, most famously in Australia.

The US Central bank was made by the U.S. Congress through the Central's passing bank Act in the Senate and its checking by President Woodrow Wilson around the same time, December 23, 1913. Australia secured its first national bank in 1920, Colombia in 1923, Mexico and Chile in 1925 and Canada and New Zealand in the result of the Exceptional Discouragement in 1934. By 1935, the fundamental gigantic free nation that did not have a national bank was Brazil, which in this way added to a precursor thereto in 1945 and the present national bank following a quarter century. Having grabbed self-sufficiency, African and Asian countries similarly settled national banks or cash related unions.

The People's Bank of China propelled its part as a Central bank starting in around 1979 with the presentation of business changes, which stimulated in 1989 when the country grasped an all around business visionary path to its passage economy. Growing further fairly in light of the European Central Bank, the People's Bank of China has by 2000 transformed into a propelled Central bank. The most recent bank model, was given together the euro, incorporates coordination of the European Central banks, which continue managing their specific economies autonomously in all respects other than cash exchange and base premium rates.


Naming of Central Banks 
There is no standard stating for the name of a central bank, however various countries use the "Bank of Country" structure for example: Bank of England (which is for sure the central bank of the United Kingdom with everything taken into account), Bank of Canada, Bank of Mexico. Some are styled "Central banks", for instance, the central Bank of Ukraine, in spite of the way that the term central bank is moreover used for private commercial banks as a piece of a couple of countries. In diverse cases, Central banks may combine the platitude "Central" (for example, European Central Bank, Central Bank of Ireland, Central Bank of Brazil). The colloquialism "Store" is also routinely included, for instance, the Store Bank of India, Store Bank of Australia, Store Bank of New Zealand, the South African Store Bank, and U.S. Central bank Structure. Other central banks are alluded to as monetary forces, for instance, the Budgetary Influence of Singapore, Maldives Cash related Force and Cayman Islands Money related Influence. Various countries have state-had banks or other semi government substances that have totally isolate limits, for instance, financing imports and admissions.

In a couple of countries, particularly in some Confidant countries, the term central bank may be used to demonstrate both the budgetary force and the principle dealing with a record component, for instance, the Soviet Union's Gosbank (state bank). In diverse countries, the term central bank may be used to exhibit that the central bank's destinations are more broad than cash related consistent quality, for instance, full business, mechanical change, or distinctive goals. Some state-asserted business banks have names suggestive of central banks, paying little respect to the likelihood that they are not: cases are the Bank of India and the Central Bank.

Finally it is said that, a steady advancement had been occurring in different nations over a long stretch of years, however process had not generally been a cognizant one, and an orderly and reliable strategy had not yet been produced and plan

Some Important Ancient Banks In The World.

1. 600 BC - Shansi Bank -  First bank in the world established in China.

2. 1157 AD - Bank of Vance - In Italy - First government bank in the world.

3. 1401 AD - Bank of Barcelona - In Italy - The massive bank established by the government                   entrepreneurship.

4. 1656 AD - Risks Bank of Sweden - In Sweden - First note issuer and chattered bank in the world.

5. 1694 AD - Bank of England - In UK - First Central Bank in the world.

6. 1700 AD - The Hindustan Bank - Calcutta - First Commercial Bank established in Indain Subcontinent.

7. 1765 AD - Bank of  Prussia - First established bank in German.

8. 1785 AD - Central Bank of India - One of the ancient bank in India.

9. 1800 AD - Bank of France - The central bank of France.

10. 1875 AD - Reichs Bank - Central bank of Germany.

11. 1882 AD - Bank of Japan - It is the  Central Bank of Japan.

12. 1913 AD - Federal Reserve System -  The Central Bank of UK.

13. 1935 AD - Reserve Bank of India - In India - First Central Bank of Indian subcontinent.

14. 1941 AD - Habib Bank Ltd. - At Bombay  In India - The fast Muslim bank of Indian subcontinent.

15. 1948 AD - State Bank of Pakistan - At korachee in Pakistan - First Central Bank of  Pakistan.

16. 1948 AD - The National Bank of Pakistan - The first commercial and scheduled bank of Pakistan.

17. 1949 AD - Eastern Mercantile Bank (At present it is Pubalee Bank Ltd.) - At Chittagong in Bangladesh - First Bengali ownership bank established by Bangladeshi.

18.1971 AD - Bangladesh Bank - The Central Bank of Bangladesh.

At last I'm extremely sorry for there are many renowned banks in the world has not been expressed here except the above disclosed banks.

Swift Code of All Banks of Bangladesh (With Website ).

Renowned Banks of Bangladesh (With Website& Swift Code).

In the beginning in Bangladesh there were six nationalized commercial banks, 2 state owned banks and three foreign banks. The private banks were evolved in 1980's . Now there are mainly two types of banks in Bangladesh:-

1. Scheduled banks : Scheduled banks are licensed to operate under the Bank Company act, 1991 (Amend up to 2013).

Bank Name	Website	Swift Code
AB Bank Limited	http://www.abbl.com	ABBLBDDH
Agrani Bank Limited	http://www.agranibank.org	AGBKBDDH
Al-Arafah Islami Bank Limited	http://www.al-arafahbank.com	ALARBDDH
Bangladesh Commerce Bank Limited	http://www.bcbl-bd.com	BCBLBDDH
Bangladesh Development Bank Limited	http://www.bdbl.com.bd	BDDBBDDH
Bangladesh Krishi Bank	http://www.krishibank.org.bd	BKBABDDH
Bank Al-Falah Limited	http://www.bankalfalah.com	ALFHBDDH
Bank Asia Limited	http://www.bankasia-bd.com	BALBBDDH
BASIC Bank Limited	http://www.basicbanklimited.com	BKSIBDDH
BRAC Bank Limited	http://www.bracbank.com	BRAKBDDH
Citibank N.A	http://www.citi.com	CITIBDDX
Commercial Bank of Ceylon Limited	http://www.combankbd.com	CCEYBDDH
Dhaka Bank Limited	http://www.dhakabank.com.bd	DHBLBDDH
Dutch-Bangla Bank Limited	http://www.dutchbanglabank.com	DBBLBDDH
Eastern Bank Limited	http://www.ebl-bd.com	EBLDBDDH
EXIM Bank Limited	http://www.eximbankbd.com	EXBKBDDH
First Security Islami Bank Limited	http://www.fsiblbd.com	FSEBBDDH
Habib Bank Ltd.	http://www.habibbankltd.com	HABBBDDH
ICB Islamic Bank Ltd.	http://www.icbislamic-bd.com	BBSHBDDH
IFIC Bank Limited	http://www.ificbankbd.com	IFICBDDH
Islami Bank Bangladesh Ltd	http://www.islamibankbd.com	IBBLBDDH
Jamuna Bank Ltd	http://www.jamunabankbd.com	JAMUBDDH
Janata Bank Limited	http://www.janatabank-bd.com	JANBBDDH
Meghna Bank Limited	http://www.meghnabank.com.bd	MGBLBDDH
Mercantile Bank Limited	http://www.mblbd.com	MBLBBDDH
Midland Bank Limited	http://www.midlandbankbd.net	MDBLBDDH
Modhumoti Bank Ltd.	http://modhumotibankltd.com	MODHBDDH
Mutual Trust Bank Limited	http://www.mutualtrustbank.com	MTBLBDDH
National Bank Limited	http://www.nblbd.com	NBLBBDDH
National Bank of Pakistan	http://www.nbp.com.pk	NBPABDDH
National Credit & Commerce Bank Ltd	http://www.nccbank.com.bd	NCCLBDDH
NRB Bank Limited	http://www.nrbbankbd.com	NRBDBDDH
NRB Commercial Bank Limited	http://www.nrbcommercialbank.com	NRBBBDDH
NRB Global Bank Limited	http://www.nrbglobalbank.com	NGBLBDDH
One Bank Limited	http://www.onebankbd.com	ONEBBDDH
Premier Bank Limited	http://www.premierbankltd.com	PRMRBDDH
Prime Bank Ltd	https://www.primebank.com.bd	PRBLBDDH
Pubali Bank Limited	http://www.pubalibangla.com	PUBABDDH
Rajshahi Krishi Unnayan Bank	http://www.rakub.org.bd	RKUBBDDH
Rupali Bank Limited	http://www.rupali-bank.com	RUPBBDDH
Shahjalal Islami Bank Limited	http://www.sjiblbd.com	SJBLBDDH
Social Islami Bank Ltd.	http://www.siblbd.com	SOIVBDDH
Sonali Bank Limited	http://www.sonalibank.com.bd	BSONBDDH
South Bangla Agriculture & Commerce Bank Limited	http://www.sbacbank.com	SBACBDDH
Southeast Bank Limited	http://www.sebankbd.com	SEBDBDDH
Standard Bank Limited	http://www.standardbankbd.com	SDBLBDDH
Standard Chartered Bank	http://www.standardchartered.com/bd	SCBLBDDX
State Bank of India	http://www.statebankofindia.com	SBINBDDH
The City Bank Ltd.	http://www.thecitybank.com	CIBLBDDH
The Farmers Bank Ltd	http://www.farmersbankbd.com	FRMSBDDH
The Hong Kong and Shanghai Banking Corporation. Ltd.	http://www.hsbc.com.bd	HSBCBDDH
Trust Bank Limited	http://www.trustbank.com.bd	TTBLBDDH
Union Bank Limited	http://www.unionbank.com.bd	UBLDBDDH
United Commercial Bank Limited	http://www.ucbl.com	UCBLBDDH
Uttara Bank Limited	http://www.uttarabank-bd.com	UTBLBDDH
Woori Bank	http://www.wooribank.com	HVBKBDDH

2. Non-Scheduled Banks: These banks are established for special and definite objective and licensed to operate under the acts that are enacted to meet up those objectives.

In Bangladesh there are four Non-Schedule banks:

a.   Ansar VDP Unnayan Bank,
b.   Karmashangosthan Bank,
c.   Probashi Kollyan Bank,
d.   Jubilee Bank

Different Types / Categories of bank.

The navel of banking is different, the needs manifold and methods multiplex. Thus, we need specific kinds of banks to cater to the above mentioned complexities. Deposit receiving institutions take the form of commercial banks, which accept deposits and provides commercial, real estate, and other loans. There are also mutual savings banks, which accept deposits and make mortgage and other types of loans. Another type is credit unions, which are cooperative organizations that issue share certificates and create member (clients) and other loans. The various types of bank on the basis of various facts are given below with detail :

A. Classification on the basic of functions :

1.Central Bank.

2.Commercial Bank.

3.Specialized Bank.

4.Others Bank.

1.Central Bank :

The money market and financial system of a country are directed, monitored and controlled depending on which bank is called central bank. Central banks are bankers’ banks, and these banks trace their history from the Bank of England. They guarantee stable monetary and financial policy from country to country and play an important role in the economy of the country. Typical functions include implementing monetary policy, managing foreign exchange and gold reserves, making decisions regarding official interest rates, acting as banker to the government and other banks, and regulating and supervising the banking industry.

These banks buy government debt, have a monopoly on the issuance of paper money, and often act as a lender of last resort to commercial banks. The term bank nowadays refers to these commercial banks. The Central bank of any country supervises controls and regulates the activities of all the commercial banks of that country. It also acts as a government banker. It controls and coordinates currency and credit policies of any country. The Reserve Bank of India is the central bank of India.

2. Commercial Bank :

Banking means accepting deposits of money from the public for the purpose of lending or investment. Commercial Banks provide financial services to businesses, including credit and debit cards, bank accounts, deposits and loans, and secured and unsecured loans. Due to deregulation, commercial banks are also competing more with investment banks in money market operations, bond underwriting, and financial advisory work. Commercial banks in modern capitalist societies act as financial intermediaries, raising funds from depositors and lending the same funds to borrowers. The depositors’ claims against the bank, their deposits, are liquid, meaning banks are expected to redeem deposits on demand, instantly.

Banks’ claims against their borrowers are much less liquid, giving borrowers a much longer span of time to repay money owed banks. Because a bank cannot immediately reclaim money lent to borrowers, it may face bankruptcy if all its depositors show up on a given day to withdraw all their money.

3. Specialized Banks:

The bank which is established, directed & managed for special purposes and for developing particular groups is called specialized bank. Specialized banks are foreign exchange banks, industrial banks, development banks, export-import banks catering to specific needs of these unique activities. These banks provide financial aid to industries, heavy turnkey projects and foreign trade.  There are some specialized banks are discussed below :

i ) Agricultural Bank :

The bank which performs its activities for the development of agriculture and agro based industry is called agricultural bank. such as Bangladesh krishi bank, agricultural bank of India.

ii) Industrial Bank :

The bank which is engaged in providing loans and investment its money for development, expansion & establishment of industries is called industrial bank. Such as BDBL.

iii) Transportation Bank :

Bank which plays  a great role to the development of transportation areas is called transportation bank. There is no transportation bank in Bangladesh. This is why commercial bank performs such office.

iv) Exchange Bank :

Such bank is concerned to help in transactions through foreign exchange is called exchange bank. An exchange bank primarily finances the foreign trade of the country. These banks will be available in more than a single country. They provide services for the buying and selling of gold and silver; transactions will be in foreign currencies.

v) Bank of Small and Cottage Industry :

This bank is related to provide finance and loan for development of small and cottage industry. Such as- BSCIB, BASIC bank ltd.

vi) Investment Bank :

An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities. An investment bank may also assist companies involved in mergers and acquisitions, and provide ancillary services such as market making, trading of derivatives, fixed income instruments, foreign exchange, commodities, and equity securities.

Investment banks aid companies in acquiring funds and they provide advice for a wide range of transactions. These banks also offer financial consulting services to companies and give advice on mergers and acquisitions and management of public assets. Such as- ICB, ICI.

vii) Merchant Bank :

These banks exist for a long time. They promote investing in organizations that reap huge benefits for a long time rather than brand new organizations. It does acts for development of business, industry and commerce. At fast it identifies the areas of various business and after that provides capital to these areas.

viii) Retail Banks:

Retail banks provide basic banking services to individual consumers. Examples include savings banks, savings and loan associations, and recurring and fixed deposits. Products and services include safe deposit boxes, checking and savings accounting, certificates of deposit (CDs), mortgages, personal, consumer and car loans.

ix) Savings Banks :

These banks are suited for employees with a monthly salary. Low waged people may open an account in the savings bank.

x) Industrial Development Bank :

These banks are committed towards enhancing the growth of industries by providing loans for a very long period of time. This is vital for the long term growth of the industries.

xi) Land Development’s Bank :

These banks promote growth in the food sector, by giving loans to farmer at a relatively lower interest rate. The loan is usually given on the basis of land. If a farmer has lots of agricultural fields then the more will be the loan provided.

xii) Grameen Bank :

Bank which relates to the  development of socio - economic conditions of remote or rural. Selecting various projects to improve the luck of rural poorer, this bank gives loan to those and creates sectors of work.

xiii) Mortgage Bank :

These banks are specialized in providing mortgage loans alone. In order to sell loans they depend solely on the secondary market.

xiv) Export-Import Bank :

The bank that are engaged in development of export-import trade.

xv) Employment Bank :

It acts for creating, expansion and development of employment.

4. Others Bank :

i) Indigenous Banks –

Native banks. They are normal moneylenders; only this time, handling huge amounts of money. They collect money from the community and provide loans to business men and industrialists for a short amount of time.

ii) Spare Bank –

These banks are present in Norway. They promote both savings and commercial facilities to the both people and organizations in Norway.

iii) Federal or National Banks –

These banks control the principles and policies of other banks across the country. These banks are managed and run by the government. This bank provides benchmarks which other banks should follow.

iv) Credit Unions –

They act just like a co operative bank except that they provide services to only one employee union in the community. Low interest rates and easy instalment paybacks are features of this bank.

v) Postal savings bank -

These banks are oriented with postal services. People save money for a defined period of time and are paid with standard interest rates.

vi) Offshore Banks –

They are also private banks except that they have little tax to pay for their transactions; there is very little regulation for this bank.

vii) Ethical Banks –

As the name implies ethical banks promote candid transactions; between various customers of the bank. Policies and rules are transparent in nature.

viii) Universal Banks –

These banks have a wide spectrum of financial assistances to provide. Insurances to stocks, they promote everything across all countries around the globe.

ix) Islamic Banks –

These banks are based on the principles of the religion Islam. There are no interests for loans acquired from this bank. Service charges may apply.

x) Community Development Bank : These banks provide services to the community; where there has been nothing or very little development over the years.

xi) Regional Bank :

The bank which works for development of any special areas or region is called regional bank. Such as - ADB.

xii) International Bank :

This bank works for internationally development is called international bank. Such as- World Bank.

B. Consumers' Based Classification :

1. Labour bank.

2. Woman bank.

3. School bank.

4. Consumer bank.

1. Labour Bank :

This bank acts for labours  so that they should be motivated to savings and may test welfare.

2. Woman Bank :

The bank which is directed to influence woman for savings and to make transaction too easy.

3. School Bank :

The bank which is established and directed to influence students for savings and to make transaction too easy.

4. Consumer Bank :

These are consumer friendly banks; they encourage the consumer in buying commercial products and provide options for easy repay of the loan amount.

C. Structural Based Classification :

1.Unit bank.

2.Branch bank.

3.Group bank.

4.Chain bank.

5.Mixed bank.

1. Unit Bank :

Banks that sell their services through one full-service Office. It has unit office, particular area, centralized administration, limited capital, efficient management, rapid decision power, freedom with easy formation, more safety.

2. Branch Bank :

It is just what the name sounds like a single banking corporation that offers a full line of banking services in two or more offices and branches. Its features are-

* Central office.

* Centralized administration and policy or plan making as well as direction.

* Branch office.

* Govt. And non-govt. company ownership.

* 10 millions authorized and paid up capital.

* Deposits are collected and advancing are provided from various branches around the country or out    of country.

* wide scope of operations.

3. Group bank :

Group banking is a group of banks are brought under a centralized management and this centralized management  experts control over all the units. It is a legal form of bank organization in which two or more independently incorporated banks are controlled by holding company.

4. Chain Bank :

Chain bank is a type of multiple office  in which the operations or policies of at least three independently incorporated banks are controlled by one or more same individuals.

5. Mixed Bank :

This is both commercial and specialized banking format. Mixed banking system refers to that banking system under which the commercial banks make  long term loans to industries.

D. Ownership Oriented Classification :

1.Public bank.

2.Private bank.

3.Joint ownership bank.

4.Autonomous bank.

i) Public Bank :

Public sectors banks are those in which the government has a major stake and they usually need to emphasize on social objectives than on profitability.

ii) Private banks:

Private sector banks are owned, managed and controlled by private promoters and they are free to operate as per market forces.

iii) Joint Ownership Bank :

The bank which is established, formed and directed by both govt. and private ownership.

iv) Autonomous Bank :

The bank which is established under special acts and controlled by own self is called autonomous bank.

E. Classification on The Basic of Organization :

1.Sole proprietorship bank.

2.Partnership bank.

3.Company bank.

4.State bank.

5.Cooperative bank.

1. Sole Proprietorship Bank :

This bank is established, formed, organized, directed and controlled under sole ownership.

2. Partnership Bank :

This bank is established, formed, organized, directed and controlled under partnership act and law. There is no partnership bank in our country.

3. Company Bank :

This bank is established, formed, organized, directed and controlled under company act and law. Most of the bank in this world are company bank.

4. State Bank :

This bank is established, formed, organized, directed and controlled under state ownership. All responsibilities and liabilities of such bank are on government of the state.

5. Co-operative bank :

co-operative banks as the name suggests gets money from the general community without any bias and provide loans to all sections of people in the neighbourhood. Their motto is not profit alone, but service.  This bank is established, formed, organized, directed and controlled under cooperative act or law of that country.

At last we con say that, the above are some of the types of banks around the globe. They may be further classified according to their roles and system.

Principles / Ideologies of Modern Bank.

Principle means established & settled indications or rules those are obeyed and followed by all for achieving organizational goals and objectives. So, bank like other organizations or institutions has few principles are given below :

1. Principles of solvency :

 Solvency is the ability of an economic unit to pay its debts or liabilities as they become due. A bank is to be financially solvent. Financial solvency of bank is expressed if its own fund (own capital + loaned capital) is high that means minimum 10 millions of  money as paid-up capital for each commercial bank.

2. Principles of liquidity :

Liquidity means the capacity to pay cash on demand. A bank is to have or preserve necessary liquidity to its volt to meet on-spot demand of its clients.

3. Principles of safety :

The duty of bank is to ensure the safety and security of deposited money and precious assets of  clients. Safety of funds is the first and main principle of investment. If bank becomes failure to ensure the security of money, the confidence of mass on bank is not achieved.

4. Principles of honesty & Reliability :

Bank tries to be reliable to general people performing its jobs with honesty. If any bank faces the questions of honesty and reliability, it can't exist to competition with other. So, every bank must do its job with the most honesty & reliability.

5. Principles of Services :

The establishment, favourites and goodwill of bank depends on better services &  variety of services providing. This is why bank is to ensure better and maximum services for its goodwill.

6. Principles of efficiency :

Well discipline and variety of services shows the efficiency of bank. So, the bankers are to effectively & efficiently perform their jobs. A efficient management can gain the success, Goodwill & prosperity of bank.

7. Principles of publicity :

Depending on the quote 'Widening  depends on publicity', bank is to highly & vigorously advertise itself as well as its products have already been newly arrived for clients and mass.

8. Principles of profitability :

The success of bank depends on gaining profits and bank exists into competition through profits. So, bank also highly try to maximization of profits through distribution of loans at higher rate of interests than the interest given to the depositors at lower rate.

9. Principles of location :

Sometimes the success of bank depends on its location. So, its location should be the most secured, at commercial & industrial area, at prosperous, recognized, developed and important places where better communication is available.

10. Principles of secrecy :

The duty of bank is to maintain the  secrecy of assets and account of its clients. Because, every client wants to hide the information of his assets. So, bank will only disclose it according to the necessity of clients and moreover when the court wants to know it.

11. Principles of credit :

Credit policy of back Will be combination of easy conditions, more safety, on handsome amount and to authentic clients.

12. Principles of specialization :

Specialization means to achieve adeptness on specific or particular area. In this principle, bank will create and provide special offers, separate opportunities, exclusive services or schemes and moderate thinking which will express to a bank exclusively.

13. Principles of goodwill :

Goodwill means to gained skill and discipline of long period of time. According to the principle, bank will try heart and soul to achieve goodwill and to preserve that gained goodwill.

14. Principles of economy :

Bank should be more economy  in every stage of every sector so that the amount of its profits should be increased.

15. Principles of investment :

Bank should invest its funds to more profitable and welfare fields and areas so-that  the confidences of clients on bank should be lift up.

16. Principles of modernization :

Bank has to build up modern and technology dependent products and services to adapt & exist with the  competitive world or market.

At last it is said, the success of bank depends on principles. The bank which is capable to establish more principles and ideality  can earn maximum success.

Objectives/ Functions of bank.

Objectives of bank

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Bank is such person, organization or place that concerns to the trade of money & loan. It gains profit by disbursing loan at higher interest rate than the rate of interest given to mass on  their deposit. But profit earning is not its only objective . It  is to gain various objectives out of earning profit. The objectives of modern bank are discussed below with two areas :

a) Business objectives.

b) Social  objectives.

a) Business objectives :

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1. Making profits.

2. Providing services.

3. Currency issue.

4. Creation of transaction media.

5. Receiving deposit.

6. Making loan.

7. Ensuring safety.

8. Investment.

b) Social objective :

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1. Creating savings.

2. Capital formation.

3. Industrialization.

4. Employment.

5. Developing living standard.

6. Economic development.

7. Supplying information.

8. Advising.

9, Representation.

Functions of Bank

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Bank is the financial institution which earn profit through accepting deposit, extending credit, issuing notes & cheque, receiving and paying interest. Bank performs many activities out of achieving organizational goal  to develop socioeconomics   of a country. The activities of bank may be divided into 3 stages.

A. General functions.

B. Economic    "

C. Others          "

A. General functions :

   -------------------------

1. Receiving deposits.

2. Advancing of loan.

3. Receiving & paying interest.

4. Issuing notes & currencies.

5. Creation of medium of exchange.

6. Money transfer.

7. Safe custody.

8. Creating deposits of credit.

9. Credit control.

10. Controlling money market.

11. Discounting.

12. Investment.

B. Economic functions :

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1. Creating savings.

2. Capital formation.

3. Representation.

4. Advising.

5. Industrial development.

6. Agricultural development.

7. Establishing relationship.

8. Issuing letter of credit.

9. Employment.

C. Other functions :

-------------------------

1. Social development.

2. Cultural development.

3. Assist to the govt..

4. Manpower development. 

5. Regional development.

At last it is said that, bank can increase the area of its functions receiving & following the principal of globalization and raising. The new level is being added to its functions with modernizing the banking system.

Features & Qualities of Bank

Feature or Characteristics of Bank

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Bank is a financial institution & intermediary. It keeps money saved by general peoples as deposit. Keeping a part of deposit to its hand for meeting  the daily necessity of client, it provides and invests the remaining part of that deposits among various types of people as loan. So, its criterion are special than any other business or financial institutions. The features and Characteristics of bank are shown below:

1. Intermediary.

2. Financial institutions.

3. Legal entity.

4. Solvency.

5. Receiving deposits.

6. Issuing loan.

7. Safety & security.

8. Keeping secrecy.

9. Servicing.

10. Representation.

At last it is said that, bank is keeping vigorous roles to develop the economy, trade and commerce for obtaining its own radical development as a financial intermediary.

Qualities / Considering factor of efficient judgement of modern or ideal bank are/ Considering factors for opening account.

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Bank is a dealer of money and loan. The bank which ensures the best service & best behavior as well as captivates to clients through security and representation is called ideal or modern bank. The qualities of ideal back are given underneath with three categories :

A. Organizational qualities.

B. Business qualities.

C. Other qualities.

A. Organizational qualities :

    -------------------------------

* Origin of bank may be established through company law or state which belongs to permanent existence.

* Location  of bank will be easy, developed, secured and according to clients choosing.

* Experienced.

* Nationality.

* Efficient management.

* Solvency.

* Economy.

* Huge numbers of client.

* Relation with central bank.

B. Business qualities :

    ------------------------

* Good behave.

* Safety.

* Higher standard of services.

* Secrecy.

* Punctuality.

* Application of standard, modern & 

   exclusive technologies.

* Goodwill.

* Liquidity.

* Higher amount of loan &

   investment.

* Lower rate of interest on loan & 

  higher rate of  profit on deposit.

* Advising.

* Representation.

* Engaged in foreign exchange.

C. Other qualities :

   ---------------------

* Existence of foreign branches.

* Assistance to the government. 

* Participation to social 

   development.

* creation of sensibility.