Financial Institution of Bangladesh

Following the independence, Bangladesh's banking industry began with six nationalized
commercial banks, three state-owned specialized banks, and nine foreign banks. With the entry
of private banks in the 1980s, the banking sector experienced considerable growth. In
Bangladesh, there are primarily two types of banks:

 Scheduled Banks: Those banks that are still listed on the Bangladesh Bank Order of
1972's list of banks.
 Non-Scheduled Banks: These are banks that were established for a specific and defined
purpose and function under any act, but are not Scheduled Banks. These banks are unable
to carry out any of the roles of scheduled banks.

Scheduled banks:

Bangladesh has sixty-one scheduled banks operating under the complete control and supervision
of Bangladesh Bank, which is empowered to do so by the Bangladesh Bank Order, 1972, and the
Bank Company Act, 1991. The following are the different categories of scheduled banks:

a. State Owned Commercial Banks (SOCBs): The government of Bangladesh owns or controls
six SOCBs:

 Agrani Bank Limited

 Bangladesh Development Bank Limited
 Basic Bank limited
 Janata Bank Limited
 Rupali Bank Limited
 Sonali Bank Limited

b. Specialized and Developement Banks (SDBs): There are currently three specialized banks in
operation, each with a particular goal in mind, such as agricultural or industrial production.
These banks are also wholly or partially owned by the Bangladeshi government. They are:

 Bangladesh Krishi Bank

 Rajshahi Krishi Unnayan Bank
  Probashi Kollyan Bank

c. Private Commercial Banks (PCBs): There are 43 private commercial banks, the majority of
which are owned by individuals or private companies. There are two types of PCBs:

 Conventional PCBs- In the industry today, there are 33 traditional PCBs. They carry out
traditional banking activities, such as interest-based transactions. The names are:
-AB Bank Limited
-Bangladesh Commerce Bank Limited
-Bank Asia Limited
-RAC Bank Limited
-Citizens Bank PLC
-City Bank Limited
-Community Bank Bangladesh Limited
-Dhaka Bank Limited
-Dutch-Bangla Bank Limited
-Eastern Bank Limited
-IFIC Bank Limited
-Jamuna Bank Limited
-Meghna Bank Limited
-Mercantile Bank Limited
-Midland Bank Limited
-Modhumoti Bank Limited
-Mutual Trust Bank Limited
-National Bank Limited
-National Credit & Commerce Bank Limited
-NRB Bank Limited
-NRB Commercial Bank Ltd
-One Bank Limited
-Padma Bank Limited
-Premier Bank Limited
-Prime Bank Limited
 -Pubali Bank Limited
-Shimanto Bank Ltd
-Southeast Bank Limited
-South Bangla Agriculture and Commerce Bank Limited
-Trust Bank Limited
-United Commercial Bank Ltd
-Uttara Bank Limited
-Bengal Commercial Bank Ltd
 Islamic Shariah based PCBs- In Bangladesh, there are ten Islamic Shariah-based PCBs
that carry out banking activities as per Islamic Shariah principles, such as Profit-Loss
Sharing (PLS) mode. They are mentioned bellow:
-Al-Arafah Islami Bank Limited
-EXIM Bank Limited
-First Security Islami Bank Limited
-ICB Islamic Bank Limited
-Islami Bank Bangladesh Limited
-Shahjalal Islami Bank Limited
-Social Islami Bank Limited
-Union Bank Ltd
-Standard Bank Limited
-Global Islamic Bank Ltd (former NRB Global Bank)

d. Foreign Commercial Banks (FCBs): There are nine FCBs operating in Bangladesh as branches
of foreign-incorporated banks.

 Bank Al-Falah Limited (United Arab Emirates)

 Citibank N.A (United States of America)
 Commercial Bank of Ceylon PLC (Sri Lanka)
 Habib Bank Limited (Pakistan)
 HSBC (Hong Kong)
 National Bank of Pakistan (Pakistan)
 Standard Chartered Bank (United Kingdom)
  State Bank of India (India)
 Woori Bank (South Korea)

Non-schedule Banks:

In Bangladesh, there are currently five non-scheduled banks:

 Ansar VDP Unnayan Bank,

 Karmashangosthan Bank,
 Grameen Bank,
 Jubilee Bank,
 Palli Sanchay Bank

Non-Banking Financial Institutions:

Non-bank financial institutions (NBFIs), also known as financial institutions (FIs), are the
categories of financial institutions controlled and supervised by Bangladesh Bank under the
Financial Institution Act of 1993. Two are wholly owned by the government, one is a subsidiary
of a SOCB, 15 were started by private domestic initiatives, and 15 by joint venture initiatives.
The NBFIs includes:

 Agrani SME Financing Company Limited

 Bangladesh Finance and Investment Company Limited (BD Finance)
 Bangladesh Industrial Finance Company Limited (BIFC)
 Bangladesh Infrastructure Finance Fund Limited (BIFFL)
 Bay Leasing & Investment Limited
 CVC Finance Limited
 Delta Brac Housing Finance Corporation Ltd. (DBH)
 Fareast Finance & Investment Limited
 FAS Finance & Investment Limited
 First Finance Limited
 GSP Finance Company (Bangladesh) Limited (GSPB)
 Hajj Finance Company Limited
 IDLC Finance Limited
  Industrial and Infrastructure Development Finance Company Limited (IIDFC)
 Infrastructure Development Company Limited (IDCOL)
 International Leasing and Financial Services Limited
 IPDC Finance Limited
 Islamic Finance and Investment Limited
 LankaBangla Finance Limited
 Lankan Alliance Finance Limited
 Meridian Finance and Investment Ltd.
 MIDAS Financing Limited. (MFL)
 National Finance Ltd
 National Housing Finance and Investments Limited
 People's Leasing and Financial Services Ltd
 Phoenix Finance and Investments Limited
 Premier Leasing & Finance Limited
 Prime Finance & Investment Ltd
 Reliance Finance Limited
 Saudi-Bangladesh Industrial and Agricultural Investment Company Limited (SABINCO)
 The UAE-Bangladesh Investment Co. Ltd
 Union Capital Limited
 United Finance Limited
 Uttara Finance and Investments Limited

The following are the main differences between banks and financial institutions:

 Cheques, pay orders, and demand drafts are not issued by financial institutions
 Request deposits are not accepted by financial institutions
 Foreign exchange funding is not permitted for FIs
 Various funding types, such as syndicated financing, bridge financing, lease financing,
securitization instruments, and private placement of equity, are available to FIs
Reference:
 Bank & Financial Institutes of Bangladesh. (n.d.). http://bfi-bd.com/.

 Related links. Financial System. (n.d.). https://www.bb.org.bd/fnansys/bankfi.php.

 Wikimedia Foundation. (2021, April 7). List of banks in Bangladesh. Wikipedia.

https://en.wikipedia.org/wiki/List_of_banks_in_Bangladesh.