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Function of commercial banks in bangladesh
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Transcript of Function of commercial banks in bangladesh
Function of Commercial
Banks in Bangladesh
Presented by
Md. Atiqur RahmanDepartment of Electrical & Electronic Engineering
Leading University
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
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
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
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
Functions of Commercial Banks in Bangladesh
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
Receiving DepositsThis 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
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Any amount can be withdrawn from this account at any time without any notice.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.
Saving Account
This type of deposit account which is usually held by the middle class group. The saving account carries lower rate of interest.
Fixed DepositAmount 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.
Advancing Loans
This is the important function of the commercial bank. Credit is given to the people in different ways.
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 rateIs 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.
Bank Overdraft
Banks allows their trustful customers to draw more than the deposit they have in the Bank. Bank charges interest on overdraft.
Cash Credit
Bank also gives credit against immovable property and interest is charged by the bank.
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.
Activities of Commercial banking in Bangladesh
United Commercial Bank Limited
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
AB Bank Limited
AB Bank Limited is the first private sector bank in Bangladesh. AB Bank provides-
Retail Bankin
gCorpor
ate Bankin
g SME Banking
NRB Banking
Islami Banking
Investment Banking
Merchant Banking
Project Finance
Loan Syndication
Money Transfer
Custodial Service
Brokerage Services
Islami Bank Bangladesh Ltd
As a consumer bank Islami Bank Bangladesh Limited provide consumer-
LoansIslami deposi
t schem
esATM Card
services
Locker
Banking
Services
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-
Contribution of Commercial Bank in the Economic Development
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
Role of Commercial Banks in 21st century
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.
Reference
www.ucbl.com www.dutchbanglabank.com www.islamibankbd.com www.abbank.com.bd www.bdresearch.org www.cib-lettercredit.com
Thank You
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