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Governor: Dr. Atiur Rahman took the helm of the central Bank of Bangladesh
for four year tenure on May 1, 2009 as the 10th Governor of Bangladesh
Bank, the country's monetary policy authority, financial sector regulator and
supervisor.
Deputy Governors: Four Deputy Governors looking after the following
sectors: Banking Regulation and Policy Department, Department of Financial
Institutions and Market, Law Department, Credit Information Bureau
Statistics Department, Monetary Policy Department , Foreign Exchange Policy
Department, Expenditure Management Department, Common Services
Department, Department of Banking Inspection -1
Board of Directors
Executive Staffs
General Managers
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Bangladesh Bank was established as a body corporate vide the
Bangladesh Bank Order, 1972 with effect from 16th December 1971 .
All the members of he body must have experience and proven
capacity in the fields of banking, trade, commerce, industry or
agriculture - all nominated by the government. The broad objectives
of the Bank are :
a) To regulate the issue of the currency and the keeping of reserves;
b) To manage the monetary and credit system of Bangladesh with a
view to stabilizing domestic monetary value;
c) To promote and maintain a high level of production, and to foster
growth and development of the country's productive resources for
the national interest
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The core functions of BB are briefly discussed as follows:
BB formulates and implements monetary policy aiming at
stabilizing domestic monetary value and maintaining competitive
external per value of taka for fostering growth.
BB formulates and implements intervention policies in the
domestic money market and foreign exchange market.
BB, as the central bank of Bangladesh reserves sole responsibility
to issue bank note
BB performs as a clearing house for the scheduled banks to clear
and settle inter-bank payment arising through drawing cheque,
drafts, bills, etc to one another.
BB acts as a banker to the government;
BB functions as a lender of the last resort for the government as
well as for the country’s scheduled banks;
BB acts as an advisor to the government;
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Overview of Financial system of Bangladesh
The financial system of Bangladesh is comprised of two broad
fragmented sectors:
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Formal Sector, includes all regulated institutions like Banks, NonBank Financial Institutions (FIs), Insurance Companies, Capital
Market Intermediaries like Brokerage Houses, Merchant Banks etc.;
Micro Finance Institutions (MFIs).
Semi-Formal Sector, inludes SEC, House Building Finance
Corporation, NGO, Grameen Bank
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Monetary Policy: The main objectives of monetary policy of
Bangladesh Bank are:
Price stability both internal & external
Sustainable growth & development
High employment
Economic and efficient use of resources
Stability of financial & payment system
Bangladesh Bank maintains the foreign exchange reserve of
the country in different currencies to minimize the risk
emerging from widespread fluctuation in exchange rate of
major currencies and very irregular movement in interest
rates in the global money market. BB has established Nostro
account arrangements with different Central Banks. Funds
accumulated in these accounts are invested in Treasury bills,
repos and other government papers in the respective
currencies. It also makes investment in the form of short term
deposits with different high rated and reputed commercial
banks.
Under the Financial sector reform program, a flexible interest
policy was formulated. According to that, banks are free to
charge/fix their deposit (Bank /Financial Institutes) and
Lending (Bank /Financial Institutes) rates other than Export
Credit. Yet, banks can differentiate interest rate up to 3%
considering comparative risk elements involved among
borrowers in same lending category.
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The exchange rate policy of Bangladesh Bank aims at maintaining
the competitiveness of Bangladeshi products in the international
markets, encouraging inflow of wage earners' remittances,
maintaining internal price stability, and maintaining a viable external
account position. Under the existing floating exchange rate regime
(that started from 31/05/2003), the interbank foreign exchange
market sets the exchange rates for customer transactions and
interbank transactions based on demand-supply interplay; However,
along with intervention in the taka money market, the US dollar
purchase or sale transactions take place by the Bangladesh Bank as
needed, to maintain orderly market conditions.
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Foreign Exchange reserve
Call Money Rate
Share Price Index
Export
Import
Tax Revenue
L/C Opening
Foreign/Local Debt
Rate of Inflation
GDP
Bank Deposit
Industrial & Consumer Loans
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The financial system of Bangladesh consists
of Bangladesh Bank (BB) as the central bank,
government owned specialized banks,
domestic private banks, foreign banks and
non-bank financial institutions. The financial
system also embraces insurance companies,
stock exchanges and co-operative banks.
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Bangladesh offers generous opportunities for investment under its
liberalized Industrial Policy and export-oriented, private sector-led
growth strategy. All but four sectors (i.e. (1) arms and ammunition
and other defense equipment and machinery, (2) forest plantation
and mechanized extraction within the bounds of reserved forests,
(3) production of nuclear energy, and (4) mining are open for
private investment in Bangladesh.
Tax holiday
Tax holiday facilities will be available for 5 or 7 years depending on
the location of the industrial enterprise. For industrial enterprises
located in Dhaka and Chittagong Divisions ( excluding Hill Tract
districts of Chittagong Division) the tax holiday facility is for 5 years
while it is 7 years for locations in Khulna, Sylhet, Barisal, and
Rajshahi, Divisions and the 3 Chittagong hill districts.
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Tax exemptions are allowed in the following cases:
* Tax exemption on royalties, technical know-how fees
received by any foreign collaborator, firm, company and
expert.
* Tax exemption on income of the private sector power
generation company for 15 years from the date of commercial
production.
Industrial undertakings not enjoying tax holiday will enjoy
accelerated depreciation allowance
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Foreign Investment
Private investment from overseas sources is welcome in all
areas of the economy with the exception of the four
reserved sectors (mentioned earlier). Such investments can
be made either independently or through venture on
mutually beneficial terms and conditions. Foreign
investment is, however, especially desired in the following
major categories of industries:
* Export oriented industries
* Industries in the Export Processing Zones ( EPZs)
* High technology products that will be either import
substitute or export oriented.
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Facilities/Incentives
A)For foreign direct investment, there is no limitation pertaining to
foreign equity participation, i.e. 100 percent foreign equity is
allowed. Non-resident institutional or individual investors can make
portfolio investments in stock exchanges in Bangladesh.
B) A foreign technician employed in foreign companies will not be
subjected to personal tax up to 3 (three) years , and beyond that
period his/ her personal income tax payment will be governed by
the existence or non-existence of agreement on avoidance of
double taxation with country of citizenship.
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Other Incentives
Citizenship by investing a minimum of US $ 500,000 or by
transferring US$ 1,000,000 to any recognized financial
institution ( Non-repatriable ).
Permanent resident ship by investing a minimum of US$ 75,000 (
non-repatriable).
Special facilities will be provided to export-oriented
industries under "Thrust sectors" . Thrust Sectors include Agrobased industries, Artificial flower-making, Computer software
and information technology, Electronics, Frozen food,
Floriculture, Gift items, Infrastructure, Jute goods, Jewellery and
diamond cutting and polishing, leather, Oil and gas, Stuffed toys,
Textiles, Tourism. Investment Protections / International
Agreements