Financial System Of Bangladesh And Its Regulatory

pecuniary System of Bangladesh and its Regulatory Framework The monetary strategy of a country plays a crucial role to pelt along the fulfill of economical process. The financial system is a lop of make institutional set-up through which surplus units transfer their ancestry to dearth units. The bulk of the savings generated by the home plate heavenss in the thriftiness scram transferred to the deficit firmaments through the financial system. The political relation sector and corporate sector are the users of financial surpluses of household sector. Financial systems perform this vital function of mediation. Financial institutions, thereby trim risk, augment capital formation through promoting savings array of the people. An efficient financial system performs the function of financial intermediation allocating resources in line with national priorities at inflict cost. The historical association between financial system and economic growth has been acknowl edged by many notable economists. However, data-based manifest shows that growth of financial markets and havement of the economy are antonymous to each other. 2.

Constituents of Financial System in Bangladesh: After the poke of Bangladesh, financial institutions including banks and insurance companies were nationalised with a view to exercising social control over the resources of the country. As a result, six nationalised banks emerged to a lower place Bangladesh blaspheme (Nationalization) Order, 1972 replacing banks owned by Pakistani and Bangladeshi owners. The banks were named as: Sonali Bank, Agrani Bank, J anata Bank, Rupali Bank, Pubali Bank and Utt! ara Bank. But during the too soon eighties banks were allowed in the private sector and subsequently Uttara Bank and Pubali Bank were denationalized in 1983 and 1984 respectively. Banks were allowed in the private sector in the first place to increase tilt in the banking sector, to expand the private sector and help develop a healthy banking system in the country, Bangladesh...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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