আপনার জন্য আরো লেখা
The Viva Preparation for the Post of Assistant Director of Bangladesh Bank
২। আপনারা যে যে বিষয়ে স্নাকোত্তর ও স্নাতক ¯ ডিগ্রী নিয়েছেন তারা সেই বিষয়ের মৌলিক ধারণা নিয়ে রাখবেন; কেননা মৌখিক পরীক্ষার সময় বোর্ডের সদস্যরা সবসময়ই কিছু না কিছু গুরুত্বপূর্ণ সাবজেক্টিভ ও টেকনিক্যাল টার্ম জিঞ্জাসা করে থাকেন।
৩। কিছু গুরুত্বপূর্ণ তথ্য দিয়ে এই লেখাটা সা্জানো হয়েছে । ভাইবা বোর্ডে এইগু্লো খুব বেশি বেশি জিঞ্জাসা করে । ব্যাংকিং এ ক্যারিয়ার করতে চাইলে এইগুলো আপনাকে জা্তেই হবে ।
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Banking sector is now one of the fastest growing sectors in Bangladesh and this sector is helping greatly in our socioeconomic development. Bank job is more secured in any category of private job and it has social recognition. Besides, bank pays handsome salaries than any other sector. So, I am interested to join in bank.-
Banking and finance is a good path to follow as I want to work in a traditional corporate structure at a large business. In our country, banking sector is one of the stable industries where one can grow career smoothly. Besides, I have an interest in the financial sector. I think job in a bank will meet my career goal and expectation. -
I have always seen the potential in the banking sector. During any recession or economic slowdown, banks have always topped the chart in regular business with no downfall. It has also a great career development potential that no other industry can provide.
Bank is the pillar of our economy. The soundness of our economy depends on the performance of the banking sector. So, it is a huge opportunity for me to contribute in our national economy. Besides, banking sector has good career growth splendid with attractive salary growth.
My aim is to be a part of our government. So, if I get the job in Bangladesh Bank I will not try for another one. Otherwise I will continue my search for a suitable job. I don't like the idea of switching jobs for this reason I have not even engaged myself in any private job. I prefer waiting for a stable respectable job.
Finance is generally related to all types of financial activities — this could be accounting, insurance and policies. On the other hand, banking is everything that happens in a bank only. The term banking and finance are two very different terms but are often associated together. These two terms are often used to denote services that a bank and other financial institutions provide to its customers.
Bangladesh Bank is the central bank of Bangladesh which controls and regulates all other state-owned and private banks and performs duty as the treasury of the government. Bangladesh Bank controls inflation by systematically controlling the supply of money in the market and through increasing the SLR and CRR rates and tightening the banking rules and regulations regarding loan disbursement.
Bangladesh Bank acts as the Central Bank of Bangladesh which was established on December 16, 1971 through the enactment of Bangladesh Bank Order 1972- President’s Order No. 127 of 1972 (Amended in 2003). The general superintendence and direction of the affairs and business of Bangladesh Bank have been entrusted to the Board of Directors which is headed by the Governor who is the Chief Executive Officer of this institution as well. In Strategic Plan (2010-2014), the vision of BB has been stated as, “To develop continually as a forward looking central bank with competent and committed professionals of high ethical standards, conducting monetary management and financial sector supervision to maintain price stability and financial system robustness, supporting rapid broad based inclusive economic growth, employment generation and poverty eradication in Bangladesh”.
Bangladesh Bank is the central bank of Bangladesh which controls and regulates all other state-owned and private banks and performs duty as the treasury of the government. Bangladesh Bank controls inflation by systematically controlling the supply of money in the market and through increasing the SLR and CRR rates and tightening the banking rules and regulations regarding loan disbursement.
Bangladesh Bank acts as the Central Bank of Bangladesh which was established on December 16, 1971 through the enactment of Bangladesh Bank Order 1972- President’s Order No. 127 of 1972 (Amended in 2003). The general superintendence and direction of the affairs and business of Bangladesh Bank have been entrusted to the Board of Directors which is headed by the Governor who is the Chief Executive Officer of this institution as well. In Strategic Plan (2010-2014), the vision of BB has been stated as, “To develop continually as a forward looking central bank with competent and committed professionals of high ethical standards, conducting monetary management and financial sector supervision to maintain price stability and financial system robustness, supporting rapid broad based inclusive economic growth, employment generation and poverty eradication in Bangladesh”.
Finance is generally related to all types of financial activities — this could be accounting, insurance and policies. On the other hand, banking is everything that happens in a bank only. The term banking and finance are two very different terms but are often associated together. These two terms are often used to denote services that a bank and other financial institutions provide to its customers.
Bangladesh Bank is the central bank of Bangladesh which controls and regulates all other state-owned and private banks and performs duty as the treasury of the government. Bangladesh Bank controls inflation by systematically controlling the supply of money in the market and through increasing the SLR and CRR rates and tightening the banking rules and regulations regarding loan disbursement.
Bangladesh Bank acts as the Central Bank of Bangladesh which was established on December 16, 1971 through the enactment of Bangladesh Bank Order 1972- President’s Order No. 127 of 1972 (Amended in 2003). The general superintendence and direction of the affairs and business of Bangladesh Bank have been entrusted to the Board of Directors which is headed by the Governor who is the Chief Executive Officer of this institution as well. In Strategic Plan (2010-2014), the vision of BB has been stated as, “To develop continually as a forward looking central bank with competent and committed professionals of high ethical standards, conducting monetary management and financial sector supervision to maintain price stability and financial system robustness, supporting rapid broad based inclusive economic growth, employment generation and poverty eradication in Bangladesh”.
Bangladesh Bank is the central bank of Bangladesh which controls and regulates all other state-owned and private banks and performs duty as the treasury of the government. Bangladesh Bank controls inflation by systematically controlling the supply of money in the market and through increasing the SLR and CRR rates and tightening the banking rules and regulations regarding loan disbursement.
Bangladesh Bank acts as the Central Bank of Bangladesh which was established on December 16, 1971 through the enactment of Bangladesh Bank Order 1972- President’s Order No. 127 of 1972 (Amended in 2003). The general superintendence and direction of the affairs and business of Bangladesh Bank have been entrusted to the Board of Directors which is headed by the Governor who is the Chief Executive Officer of this institution as well. In Strategic Plan (2010-2014), the vision of BB has been stated as, “To develop continually as a forward looking central bank with competent and committed professionals of high ethical standards, conducting monetary management and financial sector supervision to maintain price stability and financial system robustness, supporting rapid broad based inclusive economic growth, employment generation and poverty eradication in Bangladesh”.
Article 7A of the President's order number 127 of 1972 determines the functions of Bangladesh Bank where issuing of currency, to ensure a secure & efficient payment system is one of the functions. This order does not give other commercial bank to do so.
· To formulate and implement monetary policy;
· To formulate and implement intervention policies in the foreign exchange market;
· To manage the official foreign exchange reserves;
· To promote, regulate and ensure a secure and efficient payment system, including the issue of bank notes;
· To regulate and supervise banking companies and financial institutions;
· To play the role of advisor to the government on the impact of various policy measures on the economy.
· To apply Exchange Regulation Act, 1947 on behalf of the government;
· To exercise the authority given on Bangladesh Bank by the Money Laundering Prevention Act 2003.
· To hold and manage the official foreign reserves of Bangladesh
· To give advice to the Government on the interaction of monetary policy with fiscal and exchange rate policy, on the impact of various policy measures on the economy and to propose legislative measures it considers necessary or appropriate to attain its objectives and perform its functions.
· To formulate and implement monetary policy;
· To formulate and implement intervention policies in the foreign exchange market;
· To manage the official foreign exchange reserves;
· To promote, regulate and ensure a secure and efficient payment system, including the issue of bank notes;
· To regulate and supervise banking companies and financial institutions;
· To play the role of advisor to the government on the impact of various policy measures on the economy.
· To apply Exchange Regulation Act, 1947 on behalf of the government;
· To exercise the authority given on Bangladesh Bank by the Money Laundering Prevention Act 2003.
· To hold and manage the official foreign reserves of Bangladesh
· To give advice to the Government on the interaction of monetary policy with fiscal and exchange rate policy, on the impact of various policy measures on the economy and to propose legislative measures it considers necessary or appropriate to attain its objectives and perform its functions.
Bangladesh Bank uses several different methods to increase (or decrease) the amount of money in the banking system. These actions are referred to as monetary policy. Bangladesh Bank could print paper currency at its discretion in an effort to increase the amount of money in the economy – but this is not the measure used. Here are three methods Bangladesh Bank uses in order to inject (or withdraw) money from the economy:
· Bangladesh Bank can influence the money supply by modifying reserve requirements, which is the amount of funds that banks must hold against deposits in bank accounts. By lowering the reserve requirements, banks are able loan more money, which increases the overall supply of money in the economy. Conversely, by raising the reserve requirements of the scheduled banks, Bangladesh Bank is able to decrease the size of the money supply.
· Bangladesh Bank can also alter the money supply by changing short-term interest rates. By lowering (or raising) the discount rate that banks pay on short-term loans from Bangladesh Bank, Bangladesh Bank is able to effectively increase (or decrease) the liquidity of money. Lower rates increase the money supply and boost economic activity. However, decreases in interest rates fuel inflation, so Bangladesh Bank must be careful not to lower interest rates too much for too long.
· Finally, Bangladesh Bank can affect the money supply by conducting open market operations. In open operations, Bangladesh Bank buys and sells government securities in the open market. If Bangladesh Bank wants to increase the money supply, it buys government bonds. This supplies the securities dealers who sell the bonds with cash, increasing the overall money supply. Conversely, if Bangladesh Bank wants to decrease the money supply, it sells bonds from its account, thus taking in cash and removing money from the economic system.
· Bangladesh Bank can influence the money supply by modifying reserve requirements, which is the amount of funds that banks must hold against deposits in bank accounts. By lowering the reserve requirements, banks are able loan more money, which increases the overall supply of money in the economy. Conversely, by raising the reserve requirements of the scheduled banks, Bangladesh Bank is able to decrease the size of the money supply.
· Bangladesh Bank can also alter the money supply by changing short-term interest rates. By lowering (or raising) the discount rate that banks pay on short-term loans from Bangladesh Bank, Bangladesh Bank is able to effectively increase (or decrease) the liquidity of money. Lower rates increase the money supply and boost economic activity. However, decreases in interest rates fuel inflation, so Bangladesh Bank must be careful not to lower interest rates too much for too long.
· Finally, Bangladesh Bank can affect the money supply by conducting open market operations. In open operations, Bangladesh Bank buys and sells government securities in the open market. If Bangladesh Bank wants to increase the money supply, it buys government bonds. This supplies the securities dealers who sell the bonds with cash, increasing the overall money supply. Conversely, if Bangladesh Bank wants to decrease the money supply, it sells bonds from its account, thus taking in cash and removing money from the economic system.
In the last decade in the country’s banking sector, the quality of assets had been poor and classification rate was high because of absence of good risk management policies, practice, processes and structure in the banks. In this backdrop –
Bangladesh Bank has taken initiative to take a set of recommendations on best practice for five core-risk areas — credit risk management, asset-liability management, exchange risk management, internal control and compliance and anti-money laundering. Bangladesh bank regularly gives directives to the scheduled banks to introduce with implementation deadline the processes, policies and structures based on the recommendations.
Bangladesh bank regularly organises training programmes to establish effective risk management system. Bangladesh bank has strengthened the on-site supervision system to enable risk based audits.
Bangladesh Bank has taken initiative to take a set of recommendations on best practice for five core-risk areas — credit risk management, asset-liability management, exchange risk management, internal control and compliance and anti-money laundering. Bangladesh bank regularly gives directives to the scheduled banks to introduce with implementation deadline the processes, policies and structures based on the recommendations.
Bangladesh bank regularly organises training programmes to establish effective risk management system. Bangladesh bank has strengthened the on-site supervision system to enable risk based audits.
A set of acts, laws, regulations, and guidelines have been enacted and implemented time to time since the establishment of Bangladesh Bank which helped the central bank perform its role as a central bank particularly, to control and regulate country’s monetary and financial system. Among others, important laws and acts include:
Bangladesh Bank Order, 1972 Bank Company Act, 1991
Bank Company (amendment) Act, 2013
Financial Institutions Act, 1993
Bank Deposit Insurance Act, 2000
Money Loan Court Act, 2003
Micro Credit Regulatory Authority Act, 2006
Money Laundering Prevention Act,2012
Bangladesh Bank Order, 1972 Bank Company Act, 1991
Bank Company (amendment) Act, 2013
Financial Institutions Act, 1993
Bank Deposit Insurance Act, 2000
Money Loan Court Act, 2003
Micro Credit Regulatory Authority Act, 2006
Money Laundering Prevention Act,2012
The Ministry of Finance must manage government financial assets, propose economic and financial policy, and coordinate and supervise these actions as empowered by the law.
· Prepare the annual fiscal budget and issue adequate regulations for its execution.
· Manage government financial assets.
· Propose bills related to the management of government employees, particularly bills related to staffing, salaries, benefits and pensions.
· Repay debt and coordinate financial activities carried out within the scope of its power, for the different ministries and their related entities.
· Participate in the negotiation of international free trade and financial agreements.
· Prepare the annual fiscal budget and issue adequate regulations for its execution.
· Manage government financial assets.
· Propose bills related to the management of government employees, particularly bills related to staffing, salaries, benefits and pensions.
· Repay debt and coordinate financial activities carried out within the scope of its power, for the different ministries and their related entities.
· Participate in the negotiation of international free trade and financial agreements.
Advantages
· Countries that hold a large amount of international reserves are able to solve short-term external financial debt without affecting the exchange rate.
· The bigger the reserve held, the more a country can spend (investments and embark on new projects).
· Countries holding bigger reserves would be able to avoid current account deficits since future current account deficits would be better financed (running down of reserves can neutralise the effects of capital outflows).
· Reserves allow countries to adopt slower speeds of adjustment when tackling balance of payments crisis.
· They also contribute to the perceived creditworthiness of countries, lessening the occurrences of crises (in the future). For example, after the financial crisis, many countries increase their holding of international reserves to help them tide over the crisis, lessen its impact, and/or avoid such situations in the future.
Disadvantages
· Holding international reserves would imply a contemporary output loss (opportunity cost).
· Balance of payment surpluses could reflect undervalued currencies, low levels of domestic consumption and high levels of saving, the pursuit of tight monetary and fiscal policy, or commercial policy discouraging imports and encouraging exports.
· The more international reserves a country holds, the more exposed it is to fluctuations of foreign asset prices, increasing occurrences and susceptibly to financial crises.
· Countries that hold a large amount of international reserves are able to solve short-term external financial debt without affecting the exchange rate.
· The bigger the reserve held, the more a country can spend (investments and embark on new projects).
· Countries holding bigger reserves would be able to avoid current account deficits since future current account deficits would be better financed (running down of reserves can neutralise the effects of capital outflows).
· Reserves allow countries to adopt slower speeds of adjustment when tackling balance of payments crisis.
· They also contribute to the perceived creditworthiness of countries, lessening the occurrences of crises (in the future). For example, after the financial crisis, many countries increase their holding of international reserves to help them tide over the crisis, lessen its impact, and/or avoid such situations in the future.
Disadvantages
· Holding international reserves would imply a contemporary output loss (opportunity cost).
· Balance of payment surpluses could reflect undervalued currencies, low levels of domestic consumption and high levels of saving, the pursuit of tight monetary and fiscal policy, or commercial policy discouraging imports and encouraging exports.
· The more international reserves a country holds, the more exposed it is to fluctuations of foreign asset prices, increasing occurrences and susceptibly to financial crises.
Amendment of Bangladesh Bank Order 1972: the Board of Directors is empowered to formulate and implement all regulations without government approval.
· Reorganisation and modernisation: modernization of structure and working system of Bangladesh Bank
· Computerisation of functions of Bangladesh Bank
· Human Resources Development: Training of officers/staff and reforming policy supporting promotion and employment purely on the basis of talent
· Capacity Building: Strengthening Research Department, prudential regulation and supervision and accounting and audit standards.
· Strengthening the Legal Framework
· Reorganisation and modernisation: modernization of structure and working system of Bangladesh Bank
· Computerisation of functions of Bangladesh Bank
· Human Resources Development: Training of officers/staff and reforming policy supporting promotion and employment purely on the basis of talent
· Capacity Building: Strengthening Research Department, prudential regulation and supervision and accounting and audit standards.
· Strengthening the Legal Framework
Goals of Bangladesh Bank
· Reasonable price stability
· Full employment of resources
· Sustainable economic growth
· A stable balance of payment mechanism
· Prevention of fraudulence in the banking and financial sector
How does Bangladesh Bank control the banks and NBFIs
Bangladesh Bank is the regulatory body of banks, insurance companies and other financial institutions. Bangladesh Bank can control these types of organisations by controlling the interest rate, money supply, reserve requirements (CRR and SLR) and open market operations.
How does Bangladesh Bank attempt to achieve economic stability
Bangladesh Bank attempts to achieve economic stability by varying the quantity of money in circulation, the cost and availability of credit, and the composition of a country's national debt.
How Bangladesh Bank serves the people
The people keep their deposits with scheduled banks and they also take loan from scheduled banks. The scheduled banks are controlled and regulated by Bangladesh Bank. More importantly, Bangladesh Bank always tries to ensure the utmost interest of the people. This may be procedure of serving people.
Difference between Bangladesh Bank and Sonali Bank Limited
Bangladesh Bank is a banker of Sonali Bank. Bangladesh Bank also a guardian of Sonali Bank. Bangladesh Bank is a non trading concern but Sonali Bank is a fully trading concern. Bangladesh bank doesn't perform its duty with public but Sonali Bank performs its duty with public.
Why should Bangladesh Bank look into share market besides BSEC, DSE and CSE
The whole economy of Bangladesh is bank oriented and depended. Besides, the merchant banks invest in share market. So, Bangladesh Bank should look into the matter. On the other hand, the general investors incur loss in share market and indirectly blame Bangladesh bank for this.
Shyamal Kanti Biswas
Assistant Director (2015 Batch)
Bangladesh Bank
মন্তব্য