Financial System

In: Business and Management

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A financial system is a system that to channels funds from lenders to borrowers, to create liquidity and money, to provide payments mechanism, to provide financial services. The present structure of the financial system in Bangladesh comprises of various types of banks, insurance companies, non-bank financial institutions and share market.

Money market

Bank NBFI Share market Insurance

Bank: Bangladesh Bank is at the top of the banking system and is accountable for assuring prudential administration and central banking activities for all types of banks operating within the banking industry. Bangladesh Bank monitor, control the overall banking system. Banks in Bangladesh are two types: a) Scheduled Banks, b) Non Schedule bank. a) Schedule Bank: Basically Schedule bank is two type: i) State owned commercial bank. i.e. Sonali bank. ii) Private commercial bank. i.e. Prime bank, Islami bank NBFI: Non-banking financial institutions, which are not, banks. These institutions cannot perform all functions of banks. NBFI cannot issue check, not allowed to take all type of deposits except fixed deposit. It provides long term loan. Not regulated all the time by Bangladesh bank. For example: IDLC

Share market: Bangladesh Securities and Exchange Commission (BSES) is the regulator of Share market. Infrastructure: i) DSE, CSE. ii) CDBL. iii) RJSCF, iv) Merchant bank, Brokerage house. Capital Market Instruments are a number of capital market instruments used for market trade, including stocks, bonds. All of these are called capital market instruments because these are responsible for generating funds for companies, corporations, and sometimes national governments. This market is also known as…...

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