The Financial System of Bangladesh

Over examine of monetary system of Bangladesh The pecuniary system of Bangladesh is comprised of three broad fragmented heavenss 1. Formal Sector, 2. Semi-Formal Sector, 3. everyday Sector. The argonas down been categorized in accordance with their degree of regulation. The excogitateal sector includes both set institutions supersedeable depository financial institutions, Non- cuss Financial Institutions (FIs), Insurance Companies, corking trade Intermediaries like componentage Houses, merchandiser coasts etc. Micro Finance Institutions (MFIs).The rigging formal sector includes those institutions which ar regulated other(a)wise but do not fall below(a) the legal power of professional personfound confide, Insurance billet, Securities and deputize com cathexis or some(prenominal) other enacted financial g everywherenor. This sector is generally formed by Specialized Financial Institutions like House twist Finance hatful (HBFC), Palli Karma Sahayak Fo undation (PKSF), Samabay coin bank, Grameen bevel etc. , Non Governmental Organizations (NGOs and separate administration programs. Ab discover financial MarketThe financial market in Bangladesh is in the main of pastime types 1. Money Market The primitive money market is comprised of banks, FIs and primary dealers as intermediaries and savings & lending instruments, treasury bills as instruments. in that respect be currently 15 primary dealers (12 banks and 3 FIs) in Bangladesh. The solitary(prenominal) expeditious secondary market is overnight call money market which is participated by the scheduled banks and FIs. The money market in Bangladesh is regulated by Bangladesh rim (BB), the Central pious platitude of Bangladesh. . nifty market The primary segment of metropolis market is operated through orphic and public offering of uprightness and follow instruments. The secondary segment of cracking letterital market is institutionalized by dickens (02) stock t ransmutes-capital of Bangladesh p benthood Exchange and Chittagong form Exchange. The instruments in these subs be equity securities (sh atomic number 18s), debentures, corporate bonds and treasury bonds. The corking market in Bangladesh is governed by Securities and tutelage ( s). 3.Foreign Exchange Market Towards liberalization of immaterial exchange transactions, a publication of measures were adopted since mid-nineties. Bangladeshi coin, the taka, was decl atomic number 18d convertible on current narration transactions (as on 24 March 1994), in name of clause VIII of IMF Article of Agreement (1994). As Taka is not convertible in neat account, resident owned capital is not freely negotiable abroad. Repatriation of profits or dis investiture proceeds on non-resident FDI and portfolio enthronisation inflows are permitted freely.Direct investments of non-residents in the industrial sector and portfolio investments of non-residents through stock exchanges are repatriabl e abroad, as as well are capital gains and profits/dividends thereon. Investment abroad of resident-owned capital is out to prior Bangladesh marge approval, which is allowed only sparingly. Bangladesh adopted Floating Exchange pasture regime since 31 May 2003. Under the regime, BB does not interfere in the determination of exchange rate, but ope evaluate the monetary policy prudently for minimizing utmost(prenominal) swings in exchange rate to avoid indecorous repercussion on the domestic economy.The exchange rate is being determined in the market on the basis of market demand and supply forces of the respective currencies. In the forex market banks are free to buy and sale foreign currency in the spot and also in the forward markets. However, to avoid both unusual volatility in the exchange rate, Bangladesh affirm, the regulator of foreign exchange market remains vigilant over the developments in the foreign exchange market and intervenes by buying and selling foreign cur rencies whenever it deems unavoidable to keep up stability in the foreign exchange market.Regulators of the Financial System Central trust Bangladesh fix acts as the Central trust of Bangladesh which was launch on celestial latitude 16, 1972 through the enactment of Bangladesh rely Order 1972- Presidents Order No. 127 of 1972 (Amended in 2003). The general superintendence and direction of the personal matters and rail line of BB bring forth been entrusted to a 9 members Board of Directors which is headed by the regulator who is the Chief Executive Officer of this institution as well. BB has 40 departments and 9 branch offices.In Strategic Plan (2010-2014), the vision of BB has been stated as, To develop continually as a forward looking central bank with competent and committed professionals of lavishly ethical standards, conducting monetary worry and financial sector inadvertence to maintain price stability and financial system robustness, documentation rapid broad b ased inclusive economic growth, utilisation times and destitution eradication in Bangladesh. The main functions of BB are (Section 7A of BB Order, 1972) 1. to formulate and give monetary policy 2. o formulate and instrument intervention policies in the foreign exchange market 3. to give advice to the Government on the fundamental interaction of monetary policy with fiscal and exchange rate policy, on the refer of various policy measures on the economy and to propose legislative measures it considers necessary or appropriate to attain its objectives and exercise its functions 4. to hold and manage the formalized foreign reserves of Bangladesh 5. to promote, regulate and curb a secure and furrowlike payment system, including the issue of bank notes 6. o regulate and supervise banking companies and financial institutions. Core Policies of Central Bank Monetary policy The main objectives of monetary policy of Bangladesh Bank are Price stability both immanent & external Sus tainable growth & development High employment sparing and efficient use of resources Stability of financial & payment system Bangladesh Bank declares the monetary policy by issuing Monetary Policy dictation (MPS) twice (January and July) in a year.The tools and instruments for implementation of monetary policy in Bangladesh are Bank Rate, Open Market Operations (OMO), Repurchase agreements (Repo) & exterminate Repo, Statutory Reserve Requirements (SLR & CRR). Reserve instruction Strategy Bangladesh Bank maintains the foreign exchange reserve of the country in different currencies to minimize the stake emerging from widespread fluctuation in exchange rate of major currencies and very irregular movement in interest rates in the global money market.BB has established Nostro account arrangements with different Central Banks. coin accumulated in these accounts are invested in Treasury bills, repos and other government newspaper publishers in the respective currencies. It also co erces investment in the form of short term deposits with different high rated and reputed moneymaking(prenominal) banks and purchase of high rated sovereign/supranational/corporate bonds. A separate department of BB performs the in surgical process(p) functions regarding investment which is guided by investment policy set by the BBs Investment Committee headed by a Deputy Governor.The underlying belief of the investment policy is to batten the optimum return on investment with minimum market lay on the line. Interest Rate Policy Under the Financial sector reform program, a flexible interest policy was formulated. harmonize to that, banks are free to charge/fix their deposit (Bank /Financial Institutes) and lend (Bank /Financial Institutes) rates other than Export Credit. At present, except Pre-shipment merchandise creed and agricultural lending, there is no interest rate cap on lending for banks.Yet, banks undersurface differentiate interest rate up to 3% considering compa rative risk elements involved among borrowers in same lending category. With progressive deregulation of interest rates, banks sop up been advised to announce the mid-rate of the pose (if any) for different sectors and the banks may change interest 1. 5% more or less than the announced mid-rate on the basis of the comparative credit risk. Banks transfer their deposit and lending interest rate in their respective website. Capital Adequacy for Banks and FIsWith a view to strengthening the capital base of banks & FIs, Basel-II award has been introduced in both of these sectors. For banks, wide-eyed implementation of Basel-II was started in January 01, 2010 (Guidelines on try Based Capital Adequacy for banks). Now, scheduled banks in Bangladesh are postulate to maintain Tk. 4 billion or 10% of entire find Weighted Assets as capital, whichever is higher. For FIs, full implementation of Basel-II has been started in January 01, 2012 (Prudential Guidelines on Capital Adequacy and M arket Discipline (CAMD) for Financial Institutions).Now, FIs in Bangladesh are demand to maintain Tk. 1 billion or 10% of Total hazard Weighted Assets as capital, whichever is higher. Deposit Insurance The deposit indemnification contrivance (DIS) was introduced in Bangladesh in venerable 1984 to act as a gumshoe net for the depositors. both the scheduled banks Bangladesh are the member of this avoidance Bank Deposit Insurance Act 2000. The purpose of DIS is to help to increase market discipline, reduce moral hazard in the financial sector and brook safety nets at the minimum cost to the public in the caseful of bank failure.A Deposit Insurance Trust pedigree (DITF) has also been created for providing throttle protection (not exceeding Taka 0. 01 million) to a small depositor in case of twist up of any bank. The Board of Directors of BB is the Trustee Board for the DITF. BB has adopted a system of risk based deposit insurance premium rates applicable for all scheduled banks effective from January June 2007. According to new teaching method regarding premium rates, problem banks are required to pay 0. 09 percent and closed- admission banks other than the problem banks and state owned commercial banks are required to pay 0. 7 percent where the percent coverage of the deposits is taka one one hundred thousand per depositor per bank. With this end in view, BB has already advised the banks for bringing DIS into the nib of the public through displaying the same in their display board. Insurance Authority Insurance breeding and Regulatory Authority (IDRA) was instituted on January 26, 2011 as the regulator of insurance intentness being empowered by Insurance Development and Regulatory Act, 2010 by replacing its predecessor, Chief Controller of Insurance.This institution is operated under Ministry of Finance and a 4 member decision maker body headed by chairwoman is responsible for its general supervision and direction of business. IDRA has been established to make the insurance industry as the premier financial service supplier in the country by structuring on an efficient corporate surround, by securing embryonic aspiration of society and by penetrating deep into all segments for high economic growth.The mission of IDRA is to protect the interest of the policy holders and other stakeholders under insurance policy, supervise and regulate the insurance industry effectively, ensure orderly and systematic growth of the insurance industry and for matters connected therewith or incidental thereto. Regulator of Capital Market Intermediaries Securities and Exchange billing (SEC) performs the functions to regulate the capital market intermediaries and issuance of capital and financial instruments by public limited companies.It was established on June 8, 1993 under the Securities and Exchange Commission Act, 1993. A 5 member commission headed by a Chairman has the overall responsibility to administer securities legislation and t he Commission is attached to the Ministry of Finance. The mission of SEC is to protect the interests of securities investors, to develop and maintain fair, transparent and efficient securities markets and to ensure proper issuance of securities and compliance with securities laws. The main functions of SEC are regularization the business of the be obtain Exchanges or any other securities market. Registering and regulating the business of stock-brokers, sub-brokers, share transfer agents, merchant bankers and managers of issues, trustee of trust deeds, registrar of an issue, underwriters, portfolio managers, investment advisers and other intermediaries in the securities market. Registering, monitoring and regulating of collective investment scheme including all forms of shared funds. Monitoring and regulating all authorized ego regulatory organizations in the securities market. Prohibiting fraudulent and unfair trade practices in any securities market. Promoting investors educati on and providing training for intermediaries of the securities market. Prohibiting insider trading in securities. Regulating the substantial attainment of shares and take-over of companies. Undertaking investigation and inspection, inquiries and audit of any issuer or dealer of securities, the Stock Exchanges and intermediaries and any self regulatory organization in the securities market. Conducting research and make information. Regulator of Micro Finance InstitutionsTo bring Non-government Microfinance Institutions (NGO-MFIs) under a regulatory frame convey, the Government of Bangladesh enacted Microcredit Regulatory Authority Act, 2006 (Act no. 32 of 2006) which came into effect from August 27, 2006. Under this Act, the Government established Microcredit Regulatory Authority (MRA) with a view to ensuring transparency and duty of microcredit activities of the NGO-MFIs in the country. The Authority is empowered and responsible to implement the said act and to bring the microcre dit sector of the country under a full-fledged regulatory framework.MRAs mission is to ensure transparency and accountability of microfinance trading operations of NGO-MFIs as well as foster sustainable growth of this sector. In order to achieve its mission, MRA has set itself the task to attain the following goals To formulate as well as implement the policies to ensure legal governance and transparent financial systems of MFIs. To conduct in-depth research on scathing microfinance issues and provide policy inputs to the government consistent with the national strategy for poverty eradication. To provide training of NGO-MFIs and linking them with the broader financial market to facilitate sustainable resources and efficient management. To assist the government to build up an inclusive financial market for economic development of the country. To identify the priorities in the microfinance sector for policy counseling and dissemination of information to attain the MRAs social res ponsibility. According to the Act, the MRA leave be responsible for the three primary functions that will need to be carried out, namely Licensing of MFIs with explicit legal powers watch of MFIs to ensure that they continue to accord with the licensing requirements and Enforcement of sanctions in the thus fart of any MFI failing to satisfy the licensing and ongoing supervisory requirements. Banks After the independency, banking industry in Bangladesh started its journey with 6 Nationalized commercialized banks, 2 nominate owned Specialized banks and 3 Foreign Banks. In the 1980s banking industry achieved significant expansion with the entrance of private banks.Now, banks in Bangladesh are primarily of dickens types Scheduled Banks The banks which get license to operate under Bank Company Act, 1991 (Amended in 2003) are termed as Scheduled Banks. Non-Scheduled Banks The banks which are established for special and definite objective and operate under the acts that are enacted for contact up those objectives, are termed as Non-Scheduled Banks. These banks cannot perform all functions of scheduled banks. there are 47 scheduled banks in Bangladesh who operate under full control and supervision f Bangladesh Bank which is empowered to do so through Bangladesh Bank Order, 1972 and Bank Company Act, 1991. Scheduled Banks are classified ad into following types State Owned commercialized Banks (SOCBs) There are 4 SOCBs which are fully or majorly owned by the Government of Bangladesh. Nationalized moneymaking(prenominal) Bank of Bangladesh Sonali Bank Agrani Bank Rupali Bank Janata Bank Specialized Banks (SDBs) 9 specialized banks are like a shot run which were established for specific objectives like agricultural or industrial development. These banks are also fully or majorly owned by the Government of Bangladesh. . Karmasangsthan Bank 2. Bangladesh Krishi Bank 3. Rajshahi Krishi Unnayan Bank 4. Progoti Co-operative Landmortgage Bank exceptional (Progoti BanK) 5. Grameen Bank 6. Bangladesh Development Bank Ltd 7. Bangladesh Somobay Bank particular(Cooperative Bank) 8. Ansar VDP Unnyan Bank 9. staple Bank limited (Bangladesh Small Industries and transaction Bank Limited insular Commercial Banks (PCBs) There are 37 private commercial banks which are majorly owned by the private entities. PCBs can be categorized into two groups 1. United Commercial Bank Limited 2. Mutual Trust Bank Limited 3. BRAC Bank Limited . Eastern Bank Limited 5. Dutch-Bangla Bank Limited 6. Dhaka Bank Limited 7. Islami Bank Bangladesh Ltd 8. Uttara Bank Limited 9. Pubali Bank Limited 10. IFIC Bank Limited 11. National Bank Limited 12. The City Bank Limited 13. NCC Bank Limited 14. Mercantile Bank Limited 15. Prime Bank Limited 16. Southeast Bank Limited 17. Al-Arafah Islami Bank Limited 18. Social Islami Bank Limited 19. Standard Bank Limited 20. One Bank Limited 21. Exim Bank Limited 22. Bangladesh Commerce Bank Limited 23. First Security Islami Bank Limi ted 24. The premier(a) Bank Limited 25. Bank Asia Limited 26.Trust Bank Limited 27. Shahjalal Islami Bank Limited 28. Jamuna Bank Limited 29. ICB Islamic Bank 30. AB Bank 31. Social Investment Bank Ltd 32. Union Bank 33. Modhumati Bank 34. The Farmers Bank 35. Midland Bank 36. Meghna Bank 37. South Bangla Agriculture and Commerce Bank Conventional PCBs 23 conventional PCBs are now run in the industry. They perform the banking functions in conventional fashion interest based operations. Islami shariah based PCBs There are 7 Islami Shariah based PCBs in Bangladesh and they execute banking activities according to Islami Shariah based principles i. . Profit-Loss Sharing (PLS) mode. . Foreign Commercial Banks (FCBs) 10 FCBs are operating in Bangladesh as the branches of the banks which are embodied in abroad. 10 foreign commercial banks are operating in Bangladesh. These are 1. Citibank 2. HSBC 3. Standard Chartered Bank 4. Commercial Bank of Ceylon 5. State Bank of India 6. Habib B ank Limited 7. National Bank of Pakistan 8. Woori Bank 9. Bank Alfalah 10. ICICI Bank There are now 4 non-scheduled banks in Bangladesh which are Ansar VDP Unnayan Bank, Karmashangosthan Bank, Probashi Kollyan Bank, Jubilee Bank FIsNon Bank Financial Institutions (FIs) are those types of financial institutions which are regulated under Financial Institution Act, 1993 and controlled by Bangladesh Bank. Now, 31 FIs are operating in Bangladesh while the maiden one was established in 1981. bug out of the total, 2 is fully government owned, 1 is the subsidiary of a SOCB, 13 were initiated by private domestic initiative and 15 were initiated by knock venture initiative. Major sources of funds of FIs are Term Deposit (at least six months tenure), Credit Facility from Banks and other FIs, Call Money as well as Bond and Securitization.The major difference between banks and FIs are as follows FIs cannot issue cheques, pay-orders or demand drafts. FIs cannot receive demand deposits, FIs cann ot be involved in foreign exchange financing, FIs can conduct their business operations with change financing modes like syndicated financing, bridge financing, lease financing, securitization instruments, private placement of equity etc. Capital market After the independence, administration of Dhaka Stock Exchange (formerly East Pakistan Stock Exchange) initiated the pathway of capital market intermediaries in Bangladesh.In 1976, formation of Investment Corporation of Bangladesh opened the door of professional portfolio management in institutional form. In last two decades, capital market witnessed number of institutional and regulatory advancements which has resulted diversified capital market intermediaries. At present, capital market intermediaries are of following types 1. Stock Exchanges Apart from Dhaka Stock Exchange, there is another stock exchange in Bangladesh that is Chittagong Stock Exchange established in 1995. 2.Central deposition The only depository system for the transaction and settlement of financial securities, Central Depository Bangladesh Ltd (CDBL) was formed in 2000 which conducts its operations under Depositories Act 1999, Depositories Regulations 2000, Depository (User) Regulations 2003, and the CDBL by-laws. 3. Stock Dealer/Sock Broker Under SEC (Stock Dealer, Stock Broker & Authorized Representative) Rules 2000, these entities are licensed and they are bound to be a member of any of the two stock exchanges. At present, DSE and CSE have 238 and 136 members respectively. . Merchant Banker & Portfolio bus These institutions are licensed to operate under SEC (Merchant Banker & Portfolio Manager Rules) 1996 and 45 institutions have been licensed by SEC under this rules so far. 5. Asset Management Companies (AMCs) AMCs are authorized to act as issue and portfolio manager of the mutual funds which are issued under SEC (Mutual Fund) Rules 2001. There are 15 AMCs in Bangladesh at present. 6. Credit Rating Companies (CRCs) CRCs in Banglad esh are licensed under Credit Rating Companies Rules, 1996 and now, 5 CRCs have been accredited by SEC. 7.Trustees/Custodians According to rules, all asset backed securitizations and mutual funds must have an accredited trusty and security custodian. For that purpose, SEC has licensed 9 institutions as Trustees and 9 institutions as custodians. 8. Investment Corporation of Bangladesh (ICB) ICB is a specialized capital market intermediary which was established in 1976 through the ordainment of The Investment Corporation of Bangladesh Ordinance 1976. This ordinance has empowered ICB to perform all types of capital market intermediation that fall under jurisdiction of SEC. ICB has three subsidiaries 8. 1.ICB Capital Management Ltd. , 8. 2. ICB Asset Management Company Ltd. , 8. 3. ICB Securities transaction Company Ltd. Insurance Insurance sector in Bangladesh emerged after independence with 2 nationalized insurance companies- 1 invigoration & 1 planetary and 1 foreign insurance com pany. In mid 80s, private sector insurance companies started to enter in the industry and it got expanded. Now days, 62 companies are operating under Insurance Act 2010. Out of them- 18 are life history Insurance Companies including 1 foreign company and 1 is state-owned company, 44 General Insurance Companies including 1 state-owned company.Insurance companies in Bangladesh provide following services 1. Life insurance, 2. General Insurance, 3. Reinsurance, 4. Micro-insurance, 5. Takaful or Islami insurance. Micro Finance Institutions (MFIs) The member-based Microfinance Institutions (MFIs) constitute a apace growing segment of the Rural Financial Market (RFM) in Bangladesh. Microcredit programs (MCP) in Bangladesh are implemented by various formal financial institutions (nationalized commercial banks and specialized banks), specialized government organizations and Non-Government Organizations (NGOs).The growth in the MFI sector, in terms of the number of MFI as well as total memb ership, was phenomenal during the 1990s and continues till today. Despite the fact that more than a thousand of institutions are operating microcredit programs, but only 10 large Microcredit Institutions (MFIs) and Grameen Bank represent 87% of total savings of the sector and 81% of total not bad(p) loan of the sector. with the financial services of microcredit, the poor people are engaging themselves in various income generating activities and around 30 million poor people are directly benefited from microcredit programs.Credit services of this sector can be categorized into six broad groups i) general microcredit for small-scale self employment based activities, ii) microenterprise loans, iii) loans for ultra poor, iv) agricultural loans, v) seasonal loans, and vi) loans for disaster management. Currently, 599 institutions (as of October 10 2011) have been licensed by MRA to operate Micro Credit Programs. But, Grameen Bank is out of the jurisdiction of MRA as it is operated und er a distinct legislation- Grameen Bank Ordinance, 1983. youthful Developments in Financial Sector of BangladeshAutomation and Technological Development Banking sector experienced remarkable progress in respect of automation in mental process in last several years. For the pro-active and forward-visioning approach of Bangladesh Bank, numbers of automation initiatives have been implemented in banking sector. These initiatives include To create a disciplined environment for borrowing, the automated Credit Information Bureau (CIB) service provides credit cerebrate information for prospective and existing borrowers. With this improved and efficient system, risk management will be more effective.Banks and financial institutions may furnish credit information to CIB database 24 by 7 around the year and they can access credit reports from CIB online instantly. L/C Monitoring System has been introduced for conservation and utilize the all necessary information regarding L/C by the bank s through BB website. This system allows the authorized users of banks to transfer and download their L/C information. In terms of article 36(3) of Bangladesh Bank Order, 1972, all scheduled banks are subject to have Weekly Statement of Position as at the close of business on every Thursday to the Department of off-site Supervision.This statement now is submitted through on-line utilize the web upload service of BB website within o3 (three) working days after the reporting fight which is much more time and labor efficient that the earlier manual system. The e-Returns service has been introduced which is An Online Portal Service for Scheduled Banks to submit Electronic Returns using predefined template for the purpose of Macro Economy Analysis through cerebrate BB Departments. Online Export Monitoring System is used for monitoring export of Bangladesh. through with(predicate) this service, Banks and AD Branches of Banks issue & reports export report. Bangladesh Automated Clea ring House (BACH) started to work by replacing the ancient manual clearing system which allows the inter-bank cheques and resembling type instruments to be to settled in instant manner. Electronic Fund Transfer (EFT) has been introduced which facilitates the banks to make bulk payments instantly and using least paper and manpower. The initiation of Mobile Banking has been one of the most noteworthy advancement in banking. Through this system, franchises of banks through mobile operators can provide banking service to even the remotest corner of the country. Almost every commercial bank is now using their own core banking solution which has made banking very faster and efficient. engagement of plastic money has much more increase in unremarkable life transactions. skilful or partial online banking is now being near by almost every bank. Inauguration of internet trading in both of the bourses (DSE & CSE) in the country is the most significant advancement for capital market in las t several years. Micro Finance Institutions submit their reports to the regulator through the Online Report Submission Tools for MFIs. Institutional DevelopmentThrough the Central Bank Strengthening Project, there have been a darling number of achievements regarding the institutional development in BB which can be notice below The implementation of opening move Resource Planning (ERP) has been a freehand step in automation of operational structure of BB. The establishment of Enterprise Data Warehouse (under process) will bring the whole banking and FI industry under a single network through which data sharing, reporting and supervision will enter in a new horizon. Bangladesh Bank now possesses the most informative and resourceful website of the country regarding economic and financial information. internecine networking system with required online communication facilities have been developed and in operation for the officers of BB. BB has hosted number of international seminars on different economic and financial issues over last several years. MRA was established in 2006 for bringing NGO-MFIs under supervision. For the pro active role of MRA, this sector (MFI) is now in a ripe shape regarding the accountability and regulation. For abolishing anomaly and fetching discipline in insurance industry, IDRA was established in 2011.In one year, IDRA has taken number of appreciable move to regularize this industry. After the massive crash of local bourses in 2010-2011, the executive body of SEC was redesigned in full and some good results have come after that. Regulatory Development Banking and FI industries have experienced diversified regulatory development over last few years Full implementation of Basel-II (International capital adequacy standard) accord has been in effect in both banking and FI industry. Guidelines on Environmental and Climate Change Risk Management for banks and FIs have been circulated.Policy guidelines on Green Banking also have been is sued. Guidelines on express Testing for banks and FIs have been issued which is aimed to assess the resilience of banks and FIs under different adverse situations. Number of Policy initiatives for Financial Inclusion has been undertaken. Banks have been asked to build up separate Risk Management Unit for comprehensive and intensive risk management. Banks have been instructed to create separate subsidiary for capital market operations and capital market operations of banks are now minutely monitored. Supervision has been intensified to increase the participation of banks in Corporate Social obligation (CSR). For the efficient and timely action of BB, foreign exchange reserve of Bangladesh did not face any adversity during global financial turmoil of 2007-09. To couple international standard on Anti Money Laundering (AML)/Combating funding of Terrorism (CFT) issues, guidelines for Money Changers, Insurance Companies and Postal Remittance have already been circulated. SEC has updat ed Public Issue Rules, 2006 and Mutual Fund Rules, 2001.Apart from that, numbers of AMCs, merchant banks and are Mutual Funds are permitted by SEC which has increased the participation of institutional investors. The trend of capital market research has been upwardly which indicates the potential of analytical investment decision. Insurance Act 2010 was formulated to meet demand of concurrent time for shifting the insurance industry in a better shape. Apart from that, several initiatives have been undertaken by IDRA for prohibiting the malpractices in the industry regarding insurance commission, agent, premium etc and corporate governance issues.Banks As on June 2011 Deposits AdvancesTotal Capital*No. of Branches 4115855. 50 gazillion3212848. 70 Million461697. 00 Million7772 FIs As on December 2010 Deposits Loans and leasesAssetsShare Capital & ReserveNo. of Branches 94374. 80 Million321284. 87 Million251527. 34 Million44689. 29 Million115 Insurance As on December 2009 AssetShare CapitalReserve Life Insurance118020. 15 Million1245. 54 Million106098. 88 Million Non-Life Insurance42622. 90 Million6653. 83 Million12133. 30 Million Capital MarketMarket Capitalization of Dhaka Stock Exchange As on September 2011 exclusively Listed Securities2,782,901Million All Listed Companies Shares2,202,274 Million All Listed Mutual Funds35,733 Million All Debentures576 Million All Listed Govt. T-Bonds537,381 Million All Listed Corporate Bonds6,937 Million MFIs As on June 2009 Total Outstanding Number of ClientsNumber of BorrowersNo. of Branches 1,21,881. 85 Million24. 77 Million19. 50Million 18,022 * Sum of Tier-I, Tier-II and Tier-II Capital Components connect article Padma Bridge