Role of Bangladesh Bank in developing the financial system of our economy - Banking Diploma Education

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Thursday, April 27, 2017

Role of Bangladesh Bank in developing the financial system of our economy

Describe the role of Bangladesh Bank in developing the financial system of our economy.
One of the fundamental responsibilities of BB is to develop of the financial system of our country. To furnish this role BB is engaged with the following activities:
In order to broaden financial market and also to diversify the sources of credit, a large number of NBFIs have been allowed to operate. To regularize and supervise the activities of these institutions, a new department is set up.

In order to safeguard the interest of ultimate uses of the financial services, and to ensure the viability of institutions providing these services, BB has issued a comprehensive set of procedural regulations which prescribed guidelines relating to classification of short term and long term loan facilities, set criteria for management, prohibit criminal use of banking channels for the purpose of Money laundering and other unlawful activities.

In recent years, BB has been enjoying more freedom in manage the monetary policy through traditional banking tools including open market operations by its own treasury bills and instruments. It works for the overall financial system of our country.

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