Assignment

On

Bank management; recent trends and changes of Banking sector in Bangladesh

Course code: FIN 404

Submitted to

Udayshankar Sarkar

Lecturer in Department of Business Administration

City University

Submitted by

Robiul Awal

ID: 163431040

Batch: 43rd

Program: BBA

Date of submission: 22/03/2020

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Acknowledgement

First of all, we wish to express our gratitude to the almighty ALLAH for giving us the strength to
perform our responsibilities as an intern and complete this assignment within the stipulated time.

We deeply indebted to our Faculty Advisor Udayshankar Sarkar Lecturer,Department of

Business Administration City University. For his full support and encouragement.

It was his relentless co-operation: guidance and counseling that gave structure of this report and
the report as a whole. Because report on a country’s festivals is not an easy work without our
honorable teacher Udayshankar Sarkar help it may would not be completed. He always gave us
advise for complete the report best way. From this report we learn a lot of things which is
Banking Changes and trends in Bangladesh.So all credit goes to our humble course instructor
Udayshankar Sarkar. We have to acknowledge a lot of people without their guidance, help and
valuable comments it has not been possible to come to an end. For inspire us to prepare this
report we would also like to express our Sincere appreciation to him for his whole heart support
and guidance.

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Executive Summary

There is no denying the fact that the financial system plays an important role in the economic
development of a country. In detail, it is the structure by which a country’s most commercial and
well-organized projects are methodically and always directed to the most productive sources of
future growth. The monetary system not only allocations funds from borrowers to investors: it
must be able to select projects which will yield the maximum returns, gather adequate quantities
of capital to fund the range of venture projects crossways economic activities, account for price
risks across assets, monitor performance, and enforce contracts. The larger the monetary sector
in the framework of the overall economy, the greater the share of lending by depository rather
than central banks, and the greater the share of credit to private sector rather than public sector,
the greater is the rate of economic development.

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 Table of contents

Serial Topics Page

No No
1st Title page 1
Acknowledgement 2
Executive summary 3
Table of content 4
CHAPTER ONE
Introduction
1.1 Background of the report 6
1.2 Objectives of report 7
1.3 Methodology 7
1.4 Sources of Collection data 8
1.5 Limitation of the report 8
CHAPTER TWO
Country And Festival Overview
2.1 About the Banking 9
2.2 Literature review of Banking 9
2.3 Banking trend and changes 10
2.4 Islamic Banking trends 12
2.5 Basel II and Plan for its Implementation in Bangladesh 13
2.6 Electronic Banking in Bangladesh 15
2.7 Digital Bangladesh(Government Vision) 16
CHAPTER THREE
Analysis& Findings
3.1 Challenges of Banking sector 20
3.2 Findings 20
CHAPTER FOUR
Recommendation& Conclusion
4.1 Recommendation 21
4.2 Conclusion 21

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1.1Background

The Jews in Jerusalem familiarized a kind of banking in the form of currency lending before the
birth of Christ. The word ‘bank’ was maybe derivative from the word ‘bench’ as during early
time Jews used to do money-lending business sitting on long benches. First modern banking was
presented in 1668 in Stockholm as ‘Svingss Pis Bank’ which opened up a new era of banking
activities all over the European Mainland.  In the South Asian region, initial banking system was
introduced by the Afgan traders popularly known as Kabuliwallas. Muslim businessmen from
Kabul, Afganistan came to India and in progress money lending business in exchange of interest
sometime in 1312 A.D. They were known as ‘Kabuliawallas’.

Bank is very ancient institution that is underwriting towards the development of any economy as
well as acting a vital role of monetary intermediary of a country. Bank is preserved as a
significant service industry in current world. But owing to globalization and free market of
economy, this industry is facing hard competition in Bangladesh, and implementation of WTO
will further increase this competition. Banking sector in Bangladesh can be separated mainly into
four categories which are Nationalized Bank, Local Private Commercial Bank, Specialized
financial institution and Foreign Bank. By present there are 49 scheduled banks are working in
Bangladesh. Of these 4 are nationalized, 5 are specialized, 30 are local private commercial banks
and 10 are foreign bank. However, despite many fundamental banking improvements, still
domestic banks are lagging behind on many fronts likened with foreign commercial banks with
wide range of capitalization, foreign network, modern management expertise, experience,
technological progress, etc. That results for the domestic banks comparative weakness in service
quality and product quality as delivered to local customers.

National banks management are now very severely focusing on improved service quality and
product if they are to figure positive status and increase profits. Because reputation plays an
exclusively important tactical role in service markets since the pre purchase estimation of service
quality is essentially vague, and incomplete. As Julian and Ramashen, 1994 said delivering
quality services and products to customers is essential for success and survival of today’s
economical banking environment. The provision of products and services of high quality

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improves character, progresses customer holding, attracts new customer through word of mouth,
and upsurge financial presentation, and profitability.

So it is subsequently important for any trade bank in Bangladesh to understand the main drivers
of Bank status as well as to take actual measure to improve both service and product quality
which will enhance their statuses and thus attract a large share of profitable customers, and
uphold a defendable modest advantage in the long future

Our banking management started at 23rd December, 1971 by the decision of new born cabinet
and the state bank of Pakistan was renamed as “Bangladesh Bank”. This day was “Thursday”
and this day is the birthday of Bangladesh Bank. Though Bangladesh’s own banking system
started at 16th December, 1971, nevertheless the truly banking system was started at 1st January,
1972.Though all offices of Bangladesh were released on 19th December, 1971 but all banks were
closed up to 31st December, 1971. Because there were no liquidity and all banks head offices
were in West Pakistan. Through these closing period liquidity was accomplishes and entirely
banking services was started from 1st January, 1972. Mr. A.N. Hamidullah was selected as a
1st Governor of Bangladesh Bank by the government at 12th January, 1972.

 1.2Objectives of the Study

The main objective of preparing this report is to explore

 Different policies practiced by banking system of Bangladesh.

 Banking outcome in Bangladesh economy.
 Rules and regulations in banking system from the beginning to today.

1.3Methodology of the Study

It is a descriptive study that has tried to decide the Different changes for rules and regulations in
banking system from the first moment to today. Both primary and secondary sources of
information are used as sources of data collection.

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1.4 sources of data collection

Primary data: I have asked diverse questions to experienced officers and their suggestions are
used as the sources of primary data collection.

Secondary data: Various web sites, books, annual report are used as the sources of secondary
data collection.

1.5Limitation of study

There are numbers of limitations in this study. The plaintiff of the population will be

Limited in terms of size and composition. Subsequently, the investigator has conducted survey,
there were lot of chances that all the respondents will unwilling to fill up the survey. First, data
collection is restricted within Dhaka city only, which may fail to exemplify the actual situation of
the relationship between measured variables. The result might be dissimilar if people from
outside Dhaka city were carried under consideration. Second, the researcher is only seeing the
clients of only one division of each bank and thus, is not including the other customers.

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2.1About the Banking

Banking area is the key player of an economy. Since origin this sector has gone over many
changes. People today are very bankable. So there have been many changes and revolutions in
this segment. Many improvements have been made. Banking is now restricted not only in
retail banking. Nature of banking has been altered and to meet the demand of people E-
banking, Islmaic banking etc. have been developed. Banking products has been renovated and
people are now enjoying so many banking products and services. This report focuses on all
the changes proficient by banking sector.

2.2Literature Review of Banking

Financial sector development has been introduced in so many countries in order to achieve the
financial growth. Important issue is now whether there exists any connection between the
development and reform; and whether financial reforms in emerging countries arouse growth.
Though several academic literature and pragmatic studies show that financial reform develops
financial system by refining banking industry's effectiveness, utilization of savings, and
distribution of effectiveness whereby realizing economic growth .There are limited studies
those specify financial reforms are disrupting and rises the susceptibility of the financial
system.

Literatures examine several aspects of banking sector reforms and show its significances in
diverse countries. Khan and Aftab (1994) studied the effect of denationalization and
privatization aspects of monetary reforms in Pakistan. They conclude that denationalization of
banks improved performance of these banks in terms of progress of assets, rescue of loans and
ratio of bad loans.

Effect of banking sector reforms to the fiscal and monetary constancy of many provisional
economies was assessed by Feldman and Wagnar (2002) and they observed that the success of
reforms significantly contributes to the fiscal and monetary stability.

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2.3Banking: Trends and Changes

At the start of the 21st century, the largest banks in the industrial world have become
multifaceted monetary organizations that offer a wide variety of services to international
markets and control billions of dollars in cash and properties. Supported by the latest
technology, banks are working to classify new business roles, to develop modified services, to
implement innovative strategies and to capture new market opportunities. With further
globalization, alliance, deregulation and diversification of the financial industry, the banking
sector will become even additional complex.

Although, the banking business does not operate in the same manner all over the world, most
bankers think about business clients in terms of the following:

Commercial banking - banking that concealments services such as cash management (money
transfers, payroll services, bank reconcilement), credit services (asset-based backing, lines of
credits, commercial credits or commercial real estate loans), deposit services (checking or
savings account services) and foreign exchange;

Investment banking - banking that concealments an display of services from strength

securitization, coverage of unions, acquisitions and business rearrangement to securities
underwriting, equity private assignments and placements of debt securities with institutional
investors.

Over the past era there has been an increasing convergence between the activities of
investment and commercial banks, because of the deregulation of the financial sector. Today,
some investment and moneymaking banking institutions contend directly in currency market
operations, private placements, project finance, bonds underwriting and financial advisory
work. Additionally, the modern banking industry has transported greater business
diversification. Some banks in the industrialized world are entering into investments,
guaranteeing of securities, portfolio management and the insurance industries. Taken together,
these changes have made banks an even more significant entity in the global business public.

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Trade Banking has experienced large changes since eras. Now let’s have a peep at the five
trends that will have a major influence on Retail Banking and reflect the seismic shift in
strategy required to continue successful in 10 years’ time.

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2.4Islamic Banking Trends

Since the initial 1970’s, Islamic Banking does have been gaining acceptance and showing
steady growth at an astonishing rate of 10-15% annually in latest years, despite the world-
wide financial downturn. Islamic banks dishonorable all their guidelines and regulations on
the Shariah law of Fiqh al-Muamalat (rules of transactions).

Islamic banks are now situated in over 51 countries around the Globe, including the USA, and
there are over 300 organizations that qualify as Islamic Banking institutions. Islamic finance
and investing organizations are the largest rising sector in this industry, growing at 25% in the
year 2010.

Acting in According to Shariah Law in a New Stage of Islamic Banking

In August 1974, Bangladesh contracted the charter of Islamic Development Bank and
committed itself to rearrange its economic and commercial system as per Islamic Sariah.

In 1978, Bangladesh government promised recommendation of Islamic Foreign Minister’s

conference thought in Senegal regarding methodical efforts to establish Islamic banks in the
member countries progressively.

In 1979, Mohammad Mohsin, the then Diplomat of Bangladesh in the UAE addressed a letter
to the Overseas Secretary recommending formation of an Islamic bank in Bangladesh in line
with the Dubai Islamic Bank.

In 1980, Pro. ShamsulHuq, the then Foreign Minister, planned that steps should be taken for
development of an Islamic international banking system all over the member countries in the
Foreign Minister’s conference held in Pakistan.

Prior in November 1980, Bangladesh Bank, the country’s Central Bank, sent a characteristic
to study the working of numerous Islamic banks overseas and this very year an international
meeting on Islamic banking held in Dhaka was installed by the Governor of Bangladesh Bank
and he advised the participants to come forward to initial introduction of an Islamic bank in
Bangladesh.

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In January 1981, the then President of the People’s Republic of Bangladesh while give a
lecture the 3rd Islamic Consultation held at Makkah and Taif recommended: "The Islamic
countries must grow a isolated banking system of their own in order to ease their trade and
commerce."

At last, the long haggard scrap to originate an Islamic bank in Bangladesh developed a reality
and Islami Bank Bangladesh Limited was created on 30 th March, 1983 in which 19
Bangladeshi national, 4 Bangladeshi institutions and 11 banks are related, monetary
institutions and government bodies of the Middle East and Europe including IDB and two
well-known personalities of the Kingdom of Saudi Arabia amalgamated hands to make the
dream a reality.

In 1987, Al Baraka Bank Ltd. (now reorganized as The Oriental Bank) was recognized

In 1995, Al Arafah Islami Bank and Social Investment Bank Ltd. were founded.

Shamil Bank of Bahrain (Islamic Bankers) has ongoing its operation in 1997

Shahjalal Islami Bank Ltd. was created in 2001

From July, 2004 Exim Bank Ltd. transformed its whole banking operation into Islamic
Banking.

Nine conservative banks namely Prime Bank Ltd., Dhaka Bank Ltd., South East Bank  Ltd.
Premier Bank Ltd., City Bank Ltd., Jamuna Bank Ltd.,  First Security Bank Ltd Arab
Bangladesh Bank Ltd., Bank Asia Ltd. Standard Hired Bank and the HSBC have so far
recognized Islamic Banking branches in some main cities.

2.5Basel II and Plan for its Implementation in Bangladesh: The G-10 countries have decided
to device the Basel II in 2006 while non G-10 countries will take three more years’ opening from
2007. Ownership in view the global retort towards Basel II, the Bangladesh Bank has decided in
principle to accept Basel II in Bangladesh. With a view to guaranteeing migration to Basel II in a
non-disruptive manner,
Bangladesh Bank has accepted a review approach. A high level National Navigation Group
encompassing of senior bureaucrats from banking business, Bangladesh Bank, and Rented

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Accountant firms has been established. Still, an Organization Committee and a Basel-II
Application Cell have been recognized. The Bangladesh Bank means to implement the new
accord in early 2009. The Navigation Committee is now working on preparation of a roadmap
for execution of the same. The Organization Committee is secondary the navigation committee
for preparing such roadmap; consideration is being given on the existing capacity of banks and
their monetary position to meet the added capital obligation. The Basel-II Operation Cell has
completed a self-audit on acquiescence with Basel Core Principles for Real Banking Supervision
which shows that in 2006, Bangladesh Bank has achieved 9 compliant and 14 largely compliant
status out of 25 Basel Central Principles for actual banking direction as against 1 Biddable and 1
largely compliant in 2002. The Bangladesh Bank has showed a Measureable Impact Study (QIS)
with a view to assessing mindfulness and preparedness of the banks concerning Basel II
application. It is to mention that all arranged banks have formed a Basel-II Implementation Unit
as taught by Bangladesh Bank

2.6Electronic Banking in Bangladesh

Electronic Banking: Electronic Banking is converting the monetary services industry through

numerous excruciating innovations. The amount of cross-border trading and other monetary
activities is growing geometrically make likely by technology. It has been made possible by
technology, principally information technology to generate, collect and procedure information
about bank action and bank clienteles efficiently and excellently. It provides the capacity to
make more effective systems of controls in individual institutions and in the market themselves.
Associated to the paper based process, Electronic Banking Systems, in its most capable form,
offer instant verification and transfer and reduces the flow of costly paper in the record keeping
process. Application of technology in banking offer opportunity for discount of both paper and
people.

Electronic banking permit banks to enlarge their markets for old-style deposit taking and credit
postponement activities, and to offer new products and services or strengthen their modest
position in offering current payment services. In accumulation, electronic banking could lessen
operating costs for banks. More largely, the continued expansion of electronic banking and
electronic money may donate to educating the efficacy of the banking and payment system and

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to dropping the cost of retail transactions nationally and internationally. Though many fiscal
instrument and systems are now measured as “Electronic Banking” came into the terminology of
the monetary world in the late 1980s, with the likelihood of emergence of true electronic money.
All sorts of back-office information management technology and financial services using
electronic devices can be included into the term “Electronic Banking”. The development in
information technology has contributed positively to financial progress through numerous
channels. ICT

2.6.1Structure of electronic banking: E-banking is a general term denoting to various

computer-based technologies for transporting banking services. Electronic banking systems can
be separated into two categories by the functional features. Back-office electronic banking, and
electronic financial appliances or front-office electronic services. Back-office microelectronic
banking provides info administration services, and rapid fund transmission facilities both for
outdated banking and monetary instruments and electronic financial tools. Science beginning of
primary forms of electronic banking it has been passed through an inclusive evolution process.
Electronic banking services can be grouped into three generations of expansion:

Classification of electronic banking services, Generation of electronic banking, Back-office,

Front-office, First generation, Ledger , Cash management, Head office MIS, Cash dispensers,
Second generation, Transaction processing [offline], ACHs, Group of information for record
keeping, Fund transfer, Telephone bill payment, POS systems, Check verification, ATMs,
Authorization, Third generation, On-line transaction dispensation, Federal processing at country
level, Internet banking, Interbank transaction processing, Automatic Fund, Transfers, On- line
Banking, Home banking electronic, Direct Deposit, Check Truncation, Lock Box Check,
Truncation, Electronic Fund Transfer, Internet Banking

2.6.2Electronic facilities given by different bank in Bangladesh: The subsequent Electronic

services are provided that by various Foreign and Private Profitable banks (PCBs) in Bangladesh
Bank accounts: Savings, Current, FDR, PDS, and Term Deposit Outline. All these accounts are
conserved in electronic way for the sake of customer pleasure in Bangladesh. People can credit
their money through electronic device and also can withdraw their money such way. These are

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the communal bank accounts which continued by the bank customer every now and then and
bank is also given high importance or services in this respects to their customer.

2.6.3Debit Point- of-Sale: A progressive imbursement system which allows consumers to

practice an AT M Card to pay for goods and services, automatically deducting the cardholders
account and crediting the account of the mercantile.

2.6.4Cards: Credit/Debit Card: There are two different types of card. One is debit which
entitle to withdraw own money from the bank in any time. Another one is a credit scheme which
providing by bank to their customer. Customer can enjoy their credit amount while they are in
shopping, paying bills withdraw cash etc.

2.6.5Internet banking: Customers essential an Internet admission service to grip this type of

banking. As an Internet Banking client, he/she will be given a specific user ID and a
private/secret or secured password as a result they can access to their own account. Here
customer can able to see the journal balances, transfer his money, request something towards
bank, etc.

2.7 DIGITAL BANGLADESH [A vision of the Government] :) Bangladesh Bank has adopted
advanced ICT to be digitized in all compasses of its meanings including monetary policy,
banking supervision and internal controlling. Bangladesh Bank has already bring together e-
commerce, e-banking, automated clearing house etc.; a historic move to achieving higher
efficiency across all economic areas including agriculture and SME through use of ICTs.
Engineers could be pioneers innovating new applications of ICT, and reaching them to the
doorway of t the common people.

The worldwide role of Information and Communication Technology (ICT) is bubbly for socio-
economic progress of a developing country like Bangladesh. Availability of information helps
surge productivity, ensures fair and competitive market and authorizes marginal people. Digital
technology brands doing things effortlessly from any place — using mobile phone as a medium
of currency transfer and payment of utility bills, for example..

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If Bangladesh become digital it will be an e-state combined with e-governance, e-banking, e-
commerce, e-learning, e-agriculture, e-health and so on. However, the vision incorporates much
more. There is a strong relationship between economic and social development of a country and
its expertise in science and technology, so we need a knowledge-based society, efficient
management and skilled human resources as well.

We need to spread ICT facility to every village in Bangladesh, so that even farmers can get
access to internet connectivity; attain related information concerning his/her crop or product
development, pricing etc. In this construction, the government has already taken creativities to
connect Bangladesh with the second Submarine Cable Network to have secured connectivity
with the information superhighway. Understanding the potential of ICT for national
development, the government has approved the National ICT Policy, 2009 on priority basis.

Bangladesh Bank, being the monetary expert of the country, is at the front of the government’s
secure energy to digitize. We have formerly spoken a 5-year strategic plan for the financial
sector based on advanced technical requests to deliver services with greatest effectiveness. The
final goal is to make Bangladesh Bank a first-class central bank with high requests of
knowledges. It would, in fact, transform itself into a paperless organization within this plan
period.

Bangladesh Bank has achieved a historic milestone in the trade and business arena, departing
from conservative banking with the outline of e-commerce recently; a giant tread towards digital
Bangladesh. Banks have been allowed to make online money transactions, payment of utility
bills over and done with internet, transfer of funds (account to account), payments for exchange
goods and services, and ease online credit card payments in native currency.

Indeed, electronic payments will be measured as cash dealings, which will be controlled under
the Anti-Money laundering Act as well as other related rules and guidelines. It is predictable that
a national payment entry, linking all banks for inter-bank transactions (e-banking), will be well-
known soon. Electronic fund transfer will also be probable in near forthcoming. Necessary
provisions have already been taken in this direction.

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Setting up of Bangladesh Automated Clearing House (BACH) is additional distinguished event
in the history of the economic sector in Bangladesh. It will abridge the remittance channel and
payment system and, therefore, bring enthusiasm in business activities. The system was started in
early November 2009 on experimental basis, contributed by some well-prepared banks, and will
be inaugurated formally soon. Applying erudite methods, the system wishes only images and
consistent information of the submitted cheque leaves in its place of a physical one, and will
send them to the Bangladesh Automated Cheque Processing System (BACPS) using a secured
communiqué link.

Mobile banking, via cell phone as a tool, encompasses banking services to the doors of the
people. An account holder can check account history/statement, position on cheques, and sum
order, or stop payment, and so out.

However, at first, three commercial banks have been allowed mobile banking to hurry inner
transmittal transfer with the help of the channels of mobile companies. Recently, BB has
reinforced its observing and control activities on agricultural and SME loans with the help of the
standing nationwide mobile network, keeping records of cell phone numbers of farmers and
small businesspersons.

Online Credit Information Bureau (CIB) report, an essential subdivision of risk management
procedures, is expected to be launched by 2010. Banks and financial institutions will be able to
access the CIB data base online, and get the acknowledgement report of the afraid debtor. The
database will comprise of detailed information of individual borrowers, owners and guarantors.

A central bank improvement database started ICT parcels include schmoosing, banking
application, enterprise resources planning solution, initiative data warehouse etc., with a view to
certifying well-organized administration of assets including human resources.

Beneath the networking database, all the divisions of Bangladesh Bank Head Office and its nine
section offices have already been carried under a computer network (LAN/WAN), linking almost
3,100 PCs. Therefore, any official sitting anyplace (head office or branches) has access to the

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same kind of properties, and can share knowledge and information and ensure knowledge based
administration.

Banking application includes automation of all the accounts with Bangladesh Bank (banks,
financial institutions and government), foreign exchange organization, currency administration,
treasury and securities systems/module, public debt administration module, and also formation of
a central depository system (CDS) to build a platform for secondary trading of treasury bills and
bonds.

Enterprise Data Warehouse (EDW) generates an electronic data bank, which will provide all
information and statistics of monetary, trade and financial areas of the nationwide economy,
where all the afraid people of BB will have access to use it for further policy analyses. BB is
going to commence web based e-tendering system, which covers statement of tender, supply of
schedules, bidding etc., to ensure ease and transparency of offering process.

These are only a few examples of how fast the BB is developing in the procedure of digitization
of its actions. In addition, it is also taking other banks and government agencies on board to
confirm speedy, reliable, user-friendly monetary services to all.

Moreover, BB has been cheering green engineering by connecting solar panels on its own
ground and providing re-financing windows to support speedy development of solar energy,
biogas and effluent treatment plants all over the country. And in all these actions the role of
green engineers will be vital for development.

3.1Challenges: The major challenges for Bangladesh are poverty reduction and justifiable
development, but neither of these is possible without a strong science and technology base
supported by excellence in education at all levels and a well-trained work force in ICT. There
needs to be infrastructure development and technology transfer through the country to circulate
knowledge to even far-off areas of the country.

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However, the government has taken creativities to promote ICT among all compasses of people,
containing the hard-to-reach areas; tax and duty cut on computers, promoting ISP services etc.

A broadband substructure is needed with access for all Bangladeshis from their homes, work
places, schools and tele-centers with WiMAX and 3G network. We also essential a digitally
literate people and workforce, digital business development, and a legal framework that promises
freedom of appearance while protecting the rights of inventers and innovators towards building
an native knowledge and technological base.

At the beginning, we must focus on the development of structure in terms of hardware, software
and manpower. Skilled manpower from local market must be accessible to keep the system
running without liable on foreign “experts.” Sustainability of digital Bangladesh depends on our
improved facility to preserve, repair and expand once the system is installed.

In order to manage a viable digitized Bangladesh, we need a long-term plan to produce sufficient
number of scientists, computer and communication engineers, software engineers; technology
management experts etc., for more development of our ICT sector and custody pace with the
technological improvement in the developed world.

Otherwise, digital Bangladesh would be highly susceptible and reliant on on foreign

manufacturers and experts. Simultaneously, we must encourage our young engineers to move
towards use of less or no relic fuels. This green engineering will have to be one of the strategic
components of digital Bangladesh.

Definitely, we will choose for a technology-based economy. But that economy must also be
socially responsive to the needs of the lacking. In other words, we recruit to build a more
comprehensive digital Bangladesh where engineers too will play the wanted strategic role.

The vision is to see Bangladesh Bank paperless within the shortest possible time — all
communication (both internal and external) will be online — and attain higher productivity
crosswise entirely economic sectors including agriculture and SME through use of ICTs. Steps
have been taken already to bring total functions and activities of Bangladesh Bank under

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automation. Its administrative functions have been further reinforced applying advanced banking
techniques with advanced technology.

All together, they should also be approachable to the challenges of climate change, and hence
move towards green engineering. Bangladesh Bank is well aware of its responsibility in
endorsing green finance for greener Bangladesh. I am sure engineers too will play their wanted
role in this fight for a greener energy based digital Bangladesh.

4.2Conclusion:

Consolidation the financial sector is a dynamic concern for an economy. Efficient banking or
sound monetary system serves as an effective channel for assembling assets from savers to
fruitful sectors and thus helps to achieve economic progress. However, the idea of ‘Bank’ is so
antique and this notion is evolving over time. The reforms that have taken place over the past
two decades helped the profitable banks to evolve to a robust position related to the past. It has
gradually settled the rules and procedures along with the fit and proper test criteria to maintain
monetary sector discipline. These changes can increase financial intermediation and enhance
financial deepening. However, it seems that many of the changes are donor dictated rather than
to be domestically formulated. The chronology of the reforms and the estimation of the various
reforms related with central bank and financial sector suggest and designate donor involvement.

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