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Banking History of Bangladesh The buzzwording system at independence consisted of two arm offices of the former State Bank of Pakistan and seventeen large commercialised banks, two of which were ascendancyled by Bangladeshi interests and three by unlikeers separate than West Pakistanis. There were fourteen smaller commercial banks. just about all banking services were concentrated in urban areas. afterwards the liberation war, and the eventual independence of Bangladesh, the Government of Bangladesh reorganized the capital of Bangladesh branch of the State Bank of Pakistan as the central bank of the country, and named it Bangladesh Bank. This reorganization was done pursuant to Bangladesh Bank Order, 1972, and the Bangladesh Bank came into mankind with retrospective effect from 16 December 1971.The bank was obligated for regulating currency, controlling credit and monetary policy, and administering exchange control and the official foreign exchange reserves. The Bangladesh government initially nationalized the whole domestic banking system and proceeded to reorganize and rename the various banks. Foreign-owned banks were permitted to bear upon doing business in Bangladesh. The insurance business was also nationalized and became a source of potential investment funds.

Cooperative credit systems and postal savings offices handled service to small individual and rural accounts. The new-sprung(prenominal) banking system succeeded in establishing reasonably efficient procedures for managing credit and foreign exchange. The primary function of the credit system throughout the seventies was to finance trade and the public sector, which together absorbed 75 percent of total advances. The governments encouragement during the late mid-seventies and early 1980s of coarse development and private intentness brought changes in lending strategies. Managed by the Bangladesh Krishi Bank, a specialized agricultural banking institution, lending to farmers and fishermen dramatically expanded. The number of rural bank branches... If you hope to get a full essay, order it on our website: Ordercustompaper.com

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