Function of commercial banks in bangladesh
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The document discusses the functions and role of commercial banks in Bangladesh. It defines commercial banks as financial institutions that provide transactional, savings, and money market accounts while accepting time deposits. It then lists some of the major commercial banks in Bangladesh and their functions, which include receiving deposits, advancing various types of loans, and discounting bills. The document also outlines how commercial banks contribute to economic development in Bangladesh and discusses their evolving role in the 21st century global banking environment.
Function of commercial banks in bangladesh
- 1. Function of Commercial Banks in Bangladesh
- 2. Presented by Md. Atiqur Rahman Department of Electrical & Electronic Engineering Leading University
- 3. Objective Of This Study What is Commercial Banking Functions of Commercial Banks in Bangladesh Activities of Commercial banks in Bangladesh Contribution of Commercial Banks in the Economic Development Role of Commercial Banks in 21st century
- 4. What is a Commercial Banking A commercial bank is- A type of financial institution & intermediary Provides transactional Savings Money market accounts and that accepts time deposits
- 5. List of Commercial banks in Bangladesh United Commercial Bank Limited Mutual Trust Bank Limited BRAC Bank Limited Eastern Bank Limited Dutch Bangla Bank Limited Dhaka Bank Limited Islami Bank Bangladesh Ltd Uttara Bank Limited Pubali Bank Limited IFIC Bank Limited National Bank Limited The City Bank Limited NCC Bank Limited Prime Bank Limited Southeast Bank Limited Al-Arafah Islami Bank Limited Social Islami Bank Limited Standard Bank Limited One Bank Limited Exim Bank Limited Bangladesh Commerce Bank Limited First Security Islami Bank Limited The Premier Bank Limited Bank Asia Limited Trust Bank Limited Shahjalal Islami Bank Limited Jamuna Bank Limited ICB Islami Bank AB Bank Marcantile Bank Limited
- 6. Foreign Commercial Banks in Bangladesh Citibank HSBC Standard Chartered Bank Commercial Bank of Ceylon State Bank of India Habib Bank Limited National Bank of Pakistan Woori Bank Bank Alfalah ICICI Bank
- 7. Functions of Commercial Banks in Bangladesh
- 8. Functions of Commercial Banks in Bangladesh Receiving Deposits Current Account Saving Account Fixed Deposit Advancing Loans Making Loans Short Term Loans Medium Term Loans Long Term Loans Bank Overdraft Cash Credit Discounting of Bills
- 9. Receiving Deposits This is the main function of commercial banks to collect savings of individuals and firms. They offer different types of deposits for the facility of the customers. Current Account or Demand Deposits Saving Account Fixed Deposit
- 10. Current Account or Demand Deposits Any amount can be withdrawn from this account at any time without any notice. No interest is allowed on this type of account.
- 11. Saving Account This type of deposit account which is usually held by the middle class group. The saving account carries lower rate of interest.
- 12. Fixed Deposit Amount cannot be withdrawn before the fixed future date in this type of deposit. High interest is allowed in fixed deposit which is different according to period.
- 13. Advancing Loans This is the important function of the commercial bank. Credit is given to the people in different ways.
- 14. Loan Account There are three types of loans given to borrowers. i. Short Term Loans: These loans are advanced for the period of six months to one year. High Interest rate Is charged on this type of accounts. ii. Medium Term Loans: Loans from one to five years are called medium term loans. iii: Long Term Loans: Loans which are advanced for the period, more than ten years are long term loans.
- 15. Bank Overdraft Banks allows their trustful customers to draw more than the deposit they have in the Bank. Bank charges interest on overdraft.
- 16. Cash Credit Bank also gives credit against immovable property and interest is charged by the bank.
- 17. Discount of Bills This is income source of bank to discount bills of exchange. They charge nominal Interest and discount only reputed and clear bills of exchange.
- 18. Activities of Commercial banking in Bangladesh
- 19. UnitedCommercial BankLimited UCBL provides all general banking services to its clients through its 110 branches all over the country. Savings and current accounts, transfer of money, Western Union Money Transfer are some of the services UCBL presents. Deposit Schemes Loan and credit services Remittance services Stock brokerage service Innovative Services Saturday Banking
- 20. AB Bank Limited AB Bank Limited is the first private sector bank in Bangladesh. AB Bank provides- Retail Banking Corporate Banking SME Banking NRB Banking Islami Banking Investment Banking Merchant Banking Project Finance Loan Syndication Money Transfer Custodial Service Brokerage Services
- 21. Islami Bank Bangladesh Ltd As a consumer bank Islami Bank Bangladesh Limited provide consumer- Loans Islami deposit schemes ATM Card services Locker Banking Services
- 22. Dutch-Bangla Bank Limited Stock Exchange ATM Networks Fast Track Internet Payment Gateway Mobile Banking Dutch-Bangla Bank Limited (DBBL) is a scheduled join venture private commercial bank in Bangladesh. DBBL provide consumer-
- 23. Contribution of Commercial Bank in the Economic Development
- 24. Banks promote capital formation Investment in new enterprises Promotion of trade and industry Development of agriculture Balanced development of different regions Influencing economy activity Implementation of Monetary policy Monetization of the economy Export promotion cells
- 25. Role of Commercial Banks in 21st century
- 26. The commercial banks are now not confined to local banking. They are fast changing into global banking i.e., understanding the global customer, using latest information technology, competing in the open market with high technology system, changing from domestic banking to investment banking etc. The commercial bank are now considered the nerve system of all economic development in the country.
- 27. Reference www.ucbl.com www.dutchbanglabank.com www.islamibankbd.com www.abbank.com.bd www.bdresearch.org www.cib-lettercredit.com
- 28. Thank You
- 29. Question