Central Banking & Regulations (BNKG 4302)

1. Financial System of Bangladesh

Markets (Money Market, Capital Market & Foreign Exchange Market), Regulators (BB, BSEC, MRA, IDRA), Banks in Bangladesh, NBFIs in BD, Difference between Bank & NBFI, Recent Developments in Financial Sector of Bangladesh (Technological, Institutional & Regulatory Developments)

2. Central Bank

Evolution of Central Banks, Events Contributing to Develop Various Roles, Functions of Central Banks, Principles of modern central bank operations, Departments of BB, Central Bank Independence

3. Monetary & Fiscal Policy

Considerable Factors in Monetary Policy Formulation, MP Types, Policy Tools, MP in Developing Countries, Zero Bound MP, Money Multiplier, Monetary Policy in BD, Monetary Survey, Money in Circulation, Monetary Financing, Treasury Bill/Bond Auction & Repo/Reverse Repo in BD, Crowding Out Effect

4. Reserve Management

Reserve and its Components, Guiding Principles of Reserve Management, Reserve Adequacy

5. Bangladesh Bank Order 1972

Important Sections

6. Banking Supervision

Reasons for supervising banks, Mechanisms used to supervise banks

7. Basel Regulations

History of Basel (Basel I, II & III), Pillars of Basel II, Regulatory/Eligible Capital, ECAI, Risk Weights for Assets, Supervisory Review Process (SRP), Market Discipline (MD), Implementation of Basel II: Effects, Challenges, and Risks, New Requirements under Basel III compared To Basel II, Phase-in arrangements for Basel III

8. Loan Classification, Provisioning and Rescheduling

Categories of Loans and Advances, Basis for Loan Classification, Accounting of the Interest of Classified Loans, Maintenance of Provision, Base for Provision, Eligible Collateral, Reporting, Guidelines for Considering Application for Loan Rescheduling, Time Limit for Rescheduling, Down Payment, Classification and Interest Suspense of Rescheduled Loans, New Loan Facility after Rescheduling, Special Conditions for Loan Rescheduling, Restriction on Extending Term to Maturity of a Term Loan

9. Foreign Exchange Regulation

Objectives of Regulating Forex Transactions, Deregulatory Measures taken by BB, Regulations Governing Foreign Exchange Transactions in BD, Related Organizations and Their Major Roles, FER Act and Power of BB, Necessity of Supervising Forex, Departments in BB Relating with Fx Regulation and Fx Monitoring and their Major Functions, Submission of Returns, Frequently Asked Q&A: Rules of Fx Transactions in various sectors of BD

10. CAMELS Rating

Performance Ratings, Individual Ratings for Components of CAMELS, Composite Ratings

11. Anti Money Laundering and Terrorist Financing Issues

Stages of Money Laundering, Reasons for Money Laundering, Necessity of combating Money laundering, Predicate Offences, KYC (Know Your Customer), TP (Transaction Profile), Risk Grading, PEP (Politically Exposed Persons), CTR & STR

12. Green Banking

Policy Guidelines for Green Banking, BRPD Circular No.02, February 27, 2011

13. SLR (Statutory Liquidity Requirement) and CRR (Cash Reserve Ratio)

Rates for Banks & NBFIs, Eligible Liquid Assets, Submission of Returns, Penalty

14. BACH (Bangladesh Automated Clearing House)

Features of BACH, Type of Functions in BACPS, Superiority of BACH over Manual System, BEFTN- Features, Deposit & Payment Entries, Advantages

15. Prudential Regulation for Banks: Selected Issues

Deposit Insurance Scheme, Bank Charges, Financial Inclusion, Single Borrower Exposure, Writing off Loans, Interest Rates on Deposit & Lending etcetera.