Professional Documents
Culture Documents
banks in terms of control over financial asset and financial intermediation. But
in our country few specialized banks who were created by taking over
requirements of the purpose for which they were created. There contribution
towards gaining control over financial assets is still far away. The government-
The authorized and paid up capital is Tk. 2,000 million divided into 2
million shares of Tk. 1,000 each.
Organizational Structure:
Head Office - Dhaka
Division - 5
Department - 21
Zonal Office - 3
Branch Office - 15
Manpower - 769
Management:
Objectives:
Functions:
Extends long and medium term loan facilities in local and foreign
currencies to industrial projects (both new and BMRE) in the private and
public sectors as well as partnership & proprietorship concern.
Operating Policies:
New loans will not normally be sanctioned for projects in default until
such time as satisfactory arrangements have been reached with BSB Project
Promotion to repay or reschedule the amount in default.
Sources of Fund:
Paid-up Capital
Loan from Government of Bangladesh
Loan from Bangladesh Bank (Central Bank)
Different Loan Giving (Foreign) Agencies
Customer’s Deposit
Investment Priorities:
Term Loans:
BSB extends long term loans in foreign currency and /or local currency
for setting up new industrial projects and /or for balancing, modernization,
replacement and expansion of existing industrial enterprises.
Bridge Financing:
BSB also extends short term bridge financing by making advances
against shares underwritten to enable (i) a company to go into commercial
production before floating the shares for public subscription, or (ii) release of
fund against Annual Development Plan allocations by the government in respect
of public sector projects.
Equity Support:
BSB provides equity support to limited liability companies only for
financing industrial projects by way of
BSB will obtain adequate security coverage to protect its exposure in any
loan. Loans will usually be secured by mortgage, hypothecation of existing
assets of the project and / or the assets to be created with BSB’s financial
assistance.
Repayment:
Formation:
Organizational structure:
Funds:
At the initial stage, the Sangstha, used to receive significant foreign fund
from World Bank, UNDP, Asian Development Bank, OPEC, Saudi Arabia,
Germany and other countries for industrialization and to achieve the objective
for which it was established. From 1972 the Sangstha granted term loans to
various industries in different sectors of the economy.
Vision:
Mission:
Management:
Functions:
Provide medium and long-term credit facilities in both foreign and local
currencies to private sector industrial projects.
Provide underwriting, bridge financing and debenture financing
assistance to public limited companies.
Finance public sector projects without any ceilings and undertook
industrial promotional activities, especially in less developed areas.
provide equity finance, guarantees, deferred payments for machinery
imported from abroad under suppliers' credit, guarantee and counter
guarantee for loans, debts, credits, performance of contracts and financing
arrangements with foreign lending agencies, as well as local banks and
financial institutions for industrial concerns.
Does commercial banking operation is directed towards deposit
mobilization, issue of pay order and SDR, collection through a clearing
house and sale and purchase of ICB unit certificates, saving certificates
and PRIZE BONDs.
Work as banker to the public issue of shares and debentures of companies
through commercial banks.
Formation:
Bangladesh Krishi Bank (BKB) is a 100% government owned specialized
Bank in Bangladesh. KRISHI means Agriculture. Since its inception, BKB is
financing in agricultural sector remarkably. BKB also performs commercial
banking. People working abroad can easily send money home through BKB’s
Taka Drawing Arrangement. Bangladesh Krishi Bank (BKB) established in
1973 as a specialized government bank for agricultural development under the
Bangladesh Krishi Bank Order (P O No. 27 of 1973). BKB is Banking
Company under the Banking Company Act-1991. It is the successor to the
former Agricultural Development Bank of Pakistan, which was established in
1961 through merging the Agricultural Development Finance Corporation
(established 1952) and the Agricultural Bank of Pakistan (established 1957) into
one institution.
Organizational structure:
Capital:
The major economic areas in which Krishi Bank lend are agriculture,
hunting, forestry and fishing, industries of all categories, wholesale and retail
trade, and hotels, insurance, real estate and business services, transport, storage
and communication, special credit programs, including poverty alleviation, and
others. BKB also finances numerous projects and special programs like Special
Agricultural Credit Program, potato cultivation and preservation, tea plantation,
installation of hand pumps, shallow and deep tube wells, the Rural Finance
Experiment Project, projects in dairy farming, poultry, fisheries, aquaculture
and livestock, loans for production and marketing of tobacco, banana and
cotton, the Betagi Community Forest Project, Swanirvar Bangladesh and self-
employment schemes of educated unemployed youths.
Objectives:
Management:
Administration Division
Planning & Operation Division
Accounts Division and
Loan Recovery Division
Functions:
Loan Period:
Bank advances loans for short, medium and long terms. The term of loan
is determined on the basis of gestation period of a project and generation of
income by use of the loan.
Security:
Medium and long term loans are granted against security of land or
building, bank guarantee, fixed deposit, farm machinery and other assets created
out of loans. In case of big projects, loans are granted on the security of the
project on average 30% participation by the loaner in project cost.
Bangladesh Krishi Bank loans made wide economic activities created and
social impact. Various economic activities created and supported by BKB loans
substantially helped ease unemployment and under-employment problem in the
rural areas. The bank’s policy and procedure are constantly reviewed so as to
include more small farmers and operators within the fold of its credit
programme to make optimum use of natural resources and create employment
opportunities in rural areas.
Weakness:
BKB is providing loan to the rural farmer, but its loan recollection is not
satisfactory rate. Sometimes rural farmer are bound to sell their land to repay
the loan. Its large organ creates various problems over its management. Peoples
suffer a lot to get loan due to lengthiness of administration.
Formation:
Rajshahi Krishi Unnayan Bank (RAKUB), the largest development
partner in agricultural finance in the Northwest Bangladesh, is a state-owned
bank in Bangladesh specialized financial institution for financing development
of AGRICULTURE and its backward and forward linkage industries in the
Rajshahi division. It was established by the President's Ordinance No. 58 of
1986 with the aim of providing institutional agricultural credit for optimum
utilization of agricultural potentials of Rajshahi Division. Taking over the
branches and offices along with assets and liabilities of the Bangladesh Krishi
Bank within Rajshahi division (Rajshahi and Rangpur Division at present), the
bank started functioning on 15 March 1987.
Organizational Structure:
Capital:
Rajshahi Krishi Unnayan Bank (RAKUB) extends credit facilities for
Crop production, Livestock & Poultry, Farm machinery, Fishery, Agro-
industries and agri-business, Continuous credit, Poverty Alleviation and more.
Authorized capital of this bank amounts to Tk. 1800 million. At present Paid-up
capital amounts to Tk. 1800 million and reserve Tk. 208.50 million.
Management:
Weakness:
Though RAKUB provides credit facilities, it can’t go to the rural farmer to
serve them. Its inefficient management and corrupted officials hinders it main
objectives.
International Bank for
Reconstruction and Development
(IBRD)
Formation:
IBRD is the part of the World Bank (IBRD/IDA) that works with middle-
income and creditworthy poorer countries to promote sustainable, equitable and
job-creating growth, reduce poverty and address issues of regional and global
importance.
IBRD owned and operated for the benefit of its 186 member countries.
Delivering flexible, timely and tailored financial products, knowledge and
technical services and strategic advice helps its members achieve financial
results. Through the World Bank Treasury, IBRD clients also have access to
capital on favorable terms in larger volumes, with longer maturities, and in a
more sustainable manner than world financial markets typically provide.
Funds:
IBRD raises most of its funds on the world’s financial markets and has
become one of the most established borrowers since issuing its first bond in
1947. The income that IBRD has generated over the years has allowed it to fund
development activities and to ensure its financial strength, which enables it to
borrow at low cost and offer client’s good borrowing terms.
Objectives:
Functions:
Supports long term human and social development needs that privet
creditors do not finance;
Preserves borrower’s financial strength by providing support in crisis
periods, which is when poor people are most adversely affected;
Uses the leverage of financing to promote key policy and institutional
reforms (such as safety net or anticorruption reforms);
Creates a favorable investment climate in order to catalyze the provision
of private capital;
Provides financial support (in the forms of grants made available from the
IBRD’s net income) in areas that are critical to the well-being of poor
people in all countries.
Weakness:
Formation:
Islamic Development Bank (also known as IDB), is a multilateral
development financing institution of which principal office located in Jeddah,
Saudi Arabia. The Islamic Development Bank is an international financial
institution established in pursuance of the Declaration of Intent issued by the
Conference of Finance Ministers of Muslim Countries held in Jeddah in Dhul
Q'adah 1393H, corresponding to December 1973. The Inaugural Meeting of the
Board of Governors took place in Rajab 1395H, corresponding to July 1975,
and the Bank was formally opened on 15 Shawwal 1395H corresponding to 20
October 1975.
Objectives:
Membership:
The present membership of the Bank consists of 56 countries. The basic
condition for membership is that the prospective member country should be a
member of the Organization of the Islamic Conference (OIC), pay its
contribution to the capital of the Bank and be willing to accept the IDB Board
of Governors may decide upon such terms and conditions as may be decided
upon by the IDB Board of Governors.
Functions:
The functions of the Bank are to participate in equity capital and grant
loans for productive projects and enterprises besides providing financial
assistance to member countries in other forms for economic and social
development. The Bank is also required to establish and operate special funds
for specific purposes including a fund for assistance to Muslim communities in
non-member countries, in addition to setting up trust funds. The Bank is
authorized to accept deposits and to mobilize financial resources through
Shari'ah compatible modes. It is also charged with the responsibility of assisting
in the promotion of foreign trade especially in capital goods, among member
countries; providing technical assistance to member countries; and extending
training facilities for personnel engaged in development activities in Muslim
countries to conform to the Shari'ah.
Currency:
Capital:
Up to the end of 1412H (June 1992), the authorized capital of the Bank
was 2 billion Islamic Dinars (ID). Since Muharram 1413H (July 1992), in
accordance with a Resolution of the Board of Governors, it became 6 billion
Islamic Dinars, divided into 6, 00,000 shares. Its subscribed capital also became
4 billion Islamic Dinars. In 1422H, the board of governors decided to increase
the authorized capital form ID 15 billion and the subscribed capital from ID 8
billion. The Board of Governors of the IDB, in its 31 st Annual Meeting in
Kuwait, decided to increase the authorized capital stock of IDB by 15 billion to
become 30 billion Islamic Dinars and the subscribed capital by 7 billion to
become 15 billion Islamic Dinars.
Financial Year:
The Bank's financial year is the lunar Hijri year.
Language:
The official language of the Bank is Arabic, but English and French are
additionally used as working languages.
Asian Development Bank (ADB)
Formation:
The Asian Development Bank (ADB) is a regional development bank
established in 1966 to promote economic and social development in Asian and
Pacific countries through loans and technical assistance. It is a multilateral
development financial institution owned by 67 members (as of 2 February
2007, 48 from the region and 19 from other parts of the globe).
Objectives:
ADB’s vision is a region free of poverty. Its mission is to help its
developing member countries reduce poverty and improve the quality of life of
their citizens. The work of the Asian Development Bank (ADB) is aimed at
improving the welfare of the people in Asia and the Pacific, particularly the 1.9
billion who live on less than $2 a day. Despite many success stories, Asia and
the Pacific remains home to two thirds of the world are poor.
Organizational Structure:
Fund:
The bank was conceived with the vision of creating a financial institution
that would be “Asian in character” to foster growth and co-operation in a
region that back then was one of the worlds poorest. ADB raises funds through
bond issues on the world’s capital markets, while also utilizing its members’
contributions and earnings from lending. These sources account fro almost
three quarters of its lending operations.
Functions:
In pursuing its vision - an Asia and Pacific Free of Poverty, ADB's main
instruments comprise loans, technical assistance, grants, advice, and knowledge.
The preferred areas of ADB finance are roads and communication, naval and
air port, gas, electricity, water supply and sanitation, irrigation, industry,
agriculture, fisheries, etc.
International Monetary Fund (IMF)
Formation:
Objectives:
The IMF provides loans to countries that have trouble meeting their
international payments and can not otherwise find sufficient financing on
affordable terms. This financial assistance is designed to help countries restore
macro economic stability by rebuilding their international reserves, stabilizing
their currencies and paying for imports---all necessary conditions for replanting
growth. The IMF also provides confessional loans to low-income countries to
help them develop their economic condition and reduce poverty.
Organizational Structure:
The IMF has a management team and 17 departments that carry out its
country, policy, analytical, and technical work. One department is charged with
managing the IMF's resources. This section also explains where the IMF gets its
resources and how they are used. A Managing Director, the head of the staff and
Chairman of the Executive Board, leads the IMF. A First Deputy Managing
Director and two other Deputy Managing Directors assist him. The
Management team oversees the work of the staff, and maintains high-level
contacts with member governments, the media, non-governmental
organizations, think tanks, and other institutions. Current Managing Director
is Dominique Strauss-Kahn, a French national; First Deputy Managing Director
is John Lipsky, an American; two other Deputy Managing Directors are Murilo
Portugal, from Brazil; and Naoyuki Shinohara, a Japanese national.
Functions:
Criticism: