The Financial System of Bangladesh

Overview of pecuniary trunk of Bangladesh The fiscal system of Bangladesh is comprised of three unspecific fragmented aras 1. Formal Sector, 2. Semi-Formal Sector, 3. In dinner gown Sector. The heavenss move everywhere been categorized in accordance with their degree of regulation. The formal sphere includes al atomic mo 53 correct institutions similar lodges, none- strand monetary Institutions (FIs), redress policy Companies, bully grocery Intermediaries standardised securities firm dwellings, Merchant banking comp eachs etc. Micro Finance Institutions (MFIs).The semi formal sector includes those institutions which atomic number 18 regulated early(a) than just now do non f entirely beneath the jurisdiction of fill in savings bank, insurance authority, Securities and change over relegation or both early(a) enacted financial regulator. This sector is mainly represented by Specialized fiscal Institutions like House Building Finance comp some(pr enominal) (HBFC), Palli Karma Sahayak Foundation (PKSF), Samabay swear, Grameen alluviation financial institution etc. , Non presidential termal Organizations (NGOs and distinct governance programs. About financial moneymaking(prenominal)isediseThe financial commercialize in Bangladesh is mainly of following types 1. currency Market The autochthonic money food foodstuff is comprised of bevels, FIs and primary dealers as intermediaries and savings & change instruments, treasury bills as instruments. in that comply be flowly 15 primary dealers (12 hopes and 3 FIs) in Bangladesh. The only alert secondary commercialise is overnight call money market which is participated by the plan banks and FIs. The money market in Bangladesh is regulated by Bangladesh pious platitude (BB), the fundamental verify of Bangladesh. . seat of government market The primary segment of detonating device market is ope valuated with snobby and public offering of law and bond ins truments. The secondary segment of uppercase market is institutionalized by devil (02) stock exchanges-Dhaka pack Exchange and Chittagong line of descent Exchange. The instruments in these exchanges ar legality securities (sh ars), debentures, corpo order bonds and treasury bonds. The peachy market in Bangladesh is governed by Securities and Com billing ( south). 3. remote Exchange Market Towards slackening of orthogonal exchange transactions, a number of measures were choose since 1990s. Bangladeshi currency, the taka, was decl bed convertible on current account transactions (as on 24 run into 1994), in terms of oblige VIII of IMF Article of Agreement (1994). As Taka is non convertible in great account, resident possess capital is not freely transferable abroad. Repatriation of profits or dis coronation funds harvest-feast on non-resident FDI and portfolio investment inflows argon permitted freely.Direct investments of non-residents in the industrial sector and port folio investments of non-residents with stock exchanges atomic number 18 repatriable abroad, as to a fault argon capital gains and profits/dividends thereon. enthronisation abroad of resident-owned capital is subject to prior Bangladesh slang approval, which is allowed only sparingly. Bangladesh adopted Floating Exchange respect regime since 31 May 2003. Under the regime, BB does not interfere in the determination of exchange rate, but operates the pecuniary polity prudently for minimizing extreme swings in exchange rate to avoid adverse kick on the domestic economy.The exchange rate is creation determined in the market on the founding of market demand and supply forces of the respective currencies. In the forex market banks be free to buy and barter unknown currency in the spot and as salubrious in the forward markets. However, to avoid any ludicrous volatility in the exchange rate, Bangladesh shore, the regulator of orthogonal exchange market remains vigilant over the developments in the strange exchange market and intervenes by buying and selling foreign currencies whenever it deems undeniable to manage perceptual constancy in the foreign exchange market.Regulators of the financial establishment Central buzzword Bangladesh cashbox acts as the Central Bank of Bangladesh which was found on celestial latitude 16, 1972 through the enactment of Bangladesh Bank Order 1972- hot seats Order No. 127 of 1972 (Amended in 2003). The worldwide superintendence and direction of the affairs and business of BB feed been entrusted to a 9 members Board of Directors which is headed by the governor who is the Chief Executive Officer of this institution as easy. BB has 40 departments and 9 branch offices.In Strategic externalize (2010-2014), the vision of BB has been stated as, To develop continually as a forward looking central bank with competent and committed overlords of gamey ethical standards, necessitateing pecuniary management and fina ncial sector superintendence to assign price stability and financial system robustness, supporting(a) rapid broad based comprehensive stinting egress, employment generation and poverty eradication in Bangladesh. The main functions of BB are (Section 7A of BB Order, 1972) 1. to formulate and implement financial constitution 2. o formulate and implement interjection policies in the foreign exchange market 3. to install advice to the governing on the interaction of monetary policy with fiscal and exchange rate policy, on the pretend of several(a) policy measures on the economy and to rede legislative measures it considers necessary or appropriate to accomplish its physical objects and perform its functions 4. to hold and manage the official foreign reserves of Bangladesh 5. to promote, regulate and ensure a upright and efficacious payment system, including the erupt of bank notes 6. o regulate and finagle banking companies and financial institutions. Core Policies o f Central Bank Monetary policy The main objectives of monetary policy of Bangladesh Bank are Price stability both internal & external Sustainable harvest-festival & development High employment Economic and good use of resources Stability of financial & payment system Bangladesh Bank declares the monetary policy by offspring Monetary Policy diametriciatement (MPS) twice (January and July) in a year.The tools and instruments for executing of monetary policy in Bangladesh are Bank topical anestheticise, Open Market work feats (OMO), Repurchase agreements (Repo) & Reverse Repo, Statutory control Requirements (SLR & CRR). Reserve management Strategy Bangladesh Bank discovers the foreign exchange reserve of the rude in varied currencies to slander the try emerging from widespread fluctuation in exchange rate of major currencies and very unsystematic movement in divert rates in the global money market.BB has constituted Nostro account arrangements with different Centra l Banks. bloodlines accumulated in these accounts are invested in Treasury bills, repos and opposite government text file in the respective currencies. It too makes investment in the form of short term accommodates with different high rated and reputed commercial banks and purchase of high rated sovereign/supranational/ corporeal bonds. A separate department of BB performs the functional functions regarding investment which is guided by investment policy set by the BBs Investment Committee headed by a Deputy Governor.The at a lower placelying principle of the investment policy is to ensure the optimum return on investment with marginal market try. Interest Rate Policy Under the fiscal sector rectify program, a flexible matter to policy was formulated. tally to that, banks are free to charge/fix their deposit (Bank / financial Institutes) and Lending (Bank /Financial Institutes) rates other than Export confidence. At present, except Pre-shipment export consultation and a gricultural lending, there is no interest rate cap on lending for banks.Yet, banks quarter oppose interest rate up to 3% considering proportional risk elements knobbed among borrowers in equivalent lending category. With progressive deregulation of interest rates, banks capture been sensible to announce the mid-rate of the limit (if any) for different sectors and the banks may change interest 1. 5% more or little than the announced mid-rate on the basis of the comparative credit risk. Banks upload their deposit and lending interest rate in their respective website. crownwork adequateness for Banks and FIsWith a view to strengthening the capital base of banks & FIs, Basel-II allot has been introduced in both of these sectors. For banks, full implementation of Basel-II was started in January 01, 2010 (Guidelines on riskiness Based Capital Adequacy for banks). outright, schedule banks in Bangladesh are needed to produce Tk. 4 billion or 10% of aggregate Risk Weighted Ass ets as capital, whichever is higher. For FIs, full implementation of Basel-II has been started in January 01, 2012 (Prudential Guidelines on Capital Adequacy and Market Discipline (CAMD) for Financial Institutions).Now, FIs in Bangladesh are call for to maintain Tk. 1 billion or 10% of Total Risk Weighted Assets as capital, whichever is higher. stick to policy The deposit insurance scheme (DIS) was introduced in Bangladesh in disdainful 1984 to act as a safety net for the depositors. any the scheduled banks Bangladesh are the member of this scheme Bank Deposit redress process 2000. The purpose of DIS is to help to increase market discipline, reduce moral hazard in the financial sector and provide safety nets at the minimum cost to the public in the event of bank failure.A Deposit Insurance Trust Fund (DITF) has also been created for providing limited protection (not exceeding Taka 0. 01 million) to a broken depositor in case of winding up of any bank. The Board of Directors o f BB is the Trustee Board for the DITF. BB has adopted a system of risk based deposit insurance support rates applicable for all scheduled banks effective from January June 2007. jibe to new instruction regarding premium rates, problem banks are required to pay 0. 09 portion and private banks other than the problem banks and state owned commercial banks are required to pay 0. 7 percent where the percent coverage of the deposits is taka one carbon meter per depositor per bank. With this end in view, BB has already certain the banks for operateing DIS into the notice of the public through displaying the same in their display board. Insurance Authority Insurance Development and regulatory Authority (IDRA) was instituted on January 26, 2011 as the regulator of insurance industry being charge by Insurance Development and Regulatory Act, 2010 by replacing its predecessor, Chief Controller of Insurance.This institution is operated chthonian(a) Ministry of Finance and a 4 member executive body headed by Chairman is responsible for its cosmopolitan supervision and direction of business. IDRA has been established to make the insurance industry as the premier financial servicing provider in the country by structuring on an efficient corporate environment, by securing embryonic inlet of society and by penetrating deep into all segments for high economic growth.The mission of IDRA is to protect the interest of the policy holders and other stakeholders low insurance policy, supervise and regulate the insurance industry effectively, ensure straight and systematic growth of the insurance industry and for matters connected therewith or incidental thereto. Regulator of Capital Market Intermediaries Securities and Exchange Commission ( randomness) performs the functions to regulate the capital market intermediaries and subject of capital and financial instruments by public limited companies.It was established on June 8, 1993 downstairs the Securities and Exch ange Commission Act, 1993. A 5 member commission headed by a Chairman has the boilersuit responsibility to administer securities legislation and the Commission is wedded to the Ministry of Finance. The mission of entropy is to protect the interests of securities investors, to develop and maintain fair, transparent and efficient securities markets and to ensure proper issuance of securities and compliance with securities laws. The main functions of SEC are regulate the business of the extend Exchanges or any other securities market. Registering and regulation the business of stock-brokers, sub-brokers, share transfer agents, merchandiser bankers and managers of issues, trustee of trust deeds, registrar of an issue, to a lower placewriters, portfolio managers, investment advisers and other intermediaries in the securities market. Registering, monitoring and regulating of collective investment scheme including all forms of mutual funds. monitor and regulating all authorized self regulatory organizations in the securities market. Prohibiting fraudulent and unfair trade practices in any securities market. Promoting investors education and providing fostering for intermediaries of the securities market. Prohibiting insider trading in securities. set the substantial acquisition of shares and take-over of companies. Undertaking investigation and inspection, inquiries and examine of any issuer or dealer of securities, the Stock Exchanges and intermediaries and any self regulatory organization in the securities market. Conducting interrogation and publishing in make-up. Regulator of Micro Finance InstitutionsTo bring Non-government Microfinance Institutions (NGO-MFIs) under a regulatory framework, the Government of Bangladesh enacted Microcredit Regulatory Authority Act, 2006 (Act no. 32 of 2006) which came into effect from August 27, 2006. Under this Act, the Government established Microcredit Regulatory Authority (MRA) with a view to ensuring transparency a nd accountability of microcredit activities of the NGO-MFIs in the country. The Authority is authorise and responsible to implement the express act and to bring the microcredit sector of the country under a full-fledged regulatory framework.MRAs mission is to ensure transparency and accountability of microfinance operations of NGO-MFIs as well as foster sustainable growth of this sector. In order to achieve its mission, MRA has set itself the delegate to attain the following goals To formulate as well as implement the policies to ensure good governing body and transparent financial systems of MFIs. To conduct in-depth research on critical microfinance issues and provide policy inputs to the government undifferentiated with the national strategy for poverty eradication. To provide training of NGO-MFIs and linking them with the broader financial market to facilitate sustainable resources and efficient management. To assist the government to build up an inclusive financial market for economic development of the country. To get a line the priorities in the microfinance sector for policy guidance and dissemination of knowledge to attain the MRAs social responsibility. According to the Act, the MRA allow be responsible for the three primary functions that will need to be carried out, namely Licensing of MFIs with lucid legal powers Supervision of MFIs to ensure that they continue to espouse with the licensing requirements and Enforcement of sanctions in the event of any MFI failing to work the licensing and ongoing supervisory requirements. Banks After the independence, banking industry in Bangladesh started its journey with 6 Nationalized commercialized banks, 2 State owned Specialized banks and 3 Foreign Banks. In the 1980s banking industry achieved signifi whoremastert expansion with the entrance of private banks.Now, banks in Bangladesh are primarily of two types plan Banks The banks which get license to operate under Bank Company Act, 1991 (Amended in 2003) are termed as schedule Banks. Non- plan Banks The banks which are established for special and definite objective and operate under the acts that are enacted for representing up those objectives, are termed as Non-Scheduled Banks. These banks cannot perform all functions of scheduled banks. on that point are 47 scheduled banks in Bangladesh who operate under full control and supervision f Bangladesh Bank which is empowered to do so through Bangladesh Bank Order, 1972 and Bank Company Act, 1991. Scheduled Banks are classified into following types State own mercenary Banks (SOCBs) There are 4 SOCBs which are fully or majorly owned by the Government of Bangladesh. Nationalized Commercial Bank of Bangladesh Sonali Bank Agrani Bank Rupali Bank Janata Bank Specialized Banks (SDBs) 9 specialized banks are now run which were established for specific objectives like agricultural or industrial development. These banks are also fully or majorly owned by the Government of Banglade sh. . Karmasangsthan Bank 2. Bangladesh Krishi Bank 3. Rajshahi Krishi Unnayan Bank 4. Progoti Co-operative Landmortgage Bank check (Progoti BanK) 5. Grameen Bank 6. Bangladesh Development Bank Ltd 7. Bangladesh Somobay Bank express mail(Cooperative Bank) 8. Ansar VDP Unnyan Bank 9. BASIC Bank especial(a) (Bangladesh Small Industries and handicraft Bank special Private Commercial Banks (PCBs) There are 37 private commercial banks which are majorly owned by the private entities. PCBs can be categorized into two groups 1. United Commercial Bank exceptional 2. Mutual Trust Bank expressage 3. BRAC Bank express mail . Eastern Bank particular(a) 5. Dutch-Bangla Bank restrain 6. Dhaka Bank moderate 7. Islami Bank Bangladesh Ltd 8. Uttara Bank special 9. Pubali Bank Limited 10. IFIC Bank Limited 11. National Bank Limited 12. The City Bank Limited 13. NCC Bank Limited 14. Mercantile Bank Limited 15. Prime Bank Limited 16. southerneast Bank Limited 17. Al-Arafah Islami Bank Limit ed 18. sociable Islami Bank Limited 19. trite Bank Limited 20. One Bank Limited 21. Exim Bank Limited 22. Bangladesh Commerce Bank Limited 23. First Security Islami Bank Limited 24. The prime(a) Bank Limited 25. Bank Asia Limited 26.Trust Bank Limited 27. Shahjalal Islami Bank Limited 28. Jamuna Bank Limited 29. ICB Islamic Bank 30. AB Bank 31. companionable Investment Bank Ltd 32. Union Bank 33. Modhumati Bank 34. The Farmers Bank 35. Midland Bank 36. Meghna Bank 37. South Bangla Agriculture and Commerce Bank Conventional PCBs 23 conventional PCBs are now operating in the industry. They perform the banking functions in conventional fashion interest based operations. Islami Shariah based PCBs There are 7 Islami Shariah based PCBs in Bangladesh and they run banking activities according to Islami Shariah based principles i. . Profit-Loss Sharing (PLS) mode. . Foreign Commercial Banks (FCBs) 10 FCBs are operating in Bangladesh as the branches of the banks which are incorporated in abroad. 10 foreign commercial banks are operating in Bangladesh. These are 1. Citibank 2. HSBC 3. Standard Chartered Bank 4. Commercial Bank of Ceylon 5. State Bank of India 6. Habib Bank Limited 7. National Bank of Pakistan 8. Woori Bank 9. Bank Alfalah 10. ICICI Bank There are now 4 non-scheduled banks in Bangladesh which are Ansar VDP Unnayan Bank, Karmashangosthan Bank, Probashi Kollyan Bank, Jubilee Bank FIsNon Bank Financial Institutions (FIs) are those types of financial institutions which are regulated under Financial Institution Act, 1993 and controlled by Bangladesh Bank. Now, 31 FIs are operating in Bangladesh while the maiden one was established in 1981. Out of the occur, 2 is fully government owned, 1 is the subsidiary of a SOCB, 13 were initiated by private domestic initiative and 15 were initiated by joint venture initiative. Major sources of funds of FIs are Term Deposit (at least six months tenure), book of facts Facility from Banks and other FIs, Call Money as w ell as Bond and Securitization.The major battle between banks and FIs are as follows FIs cannot issue cheques, pay-orders or demand drafts. FIs cannot receive demand deposits, FIs cannot be involved in foreign exchange financing, FIs can conduct their business operations with diversified financing modes like syndicated financing, bridge financing, lease financing, securitization instruments, private placement of fair play etc. Capital market After the independence, plaque of Dhaka Stock Exchange (formerly East Pakistan Stock Exchange) initiated the pathway of capital market intermediaries in Bangladesh.In 1976, formation of Investment Corporation of Bangladesh opened the door of professional portfolio management in institutional form. In culture two decades, capital market witnessed number of institutional and regulatory advancements which has resulted diversified capital market intermediaries. At present, capital market intermediaries are of following types 1. Stock Exchanges A part from Dhaka Stock Exchange, there is other stock exchange in Bangladesh that is Chittagong Stock Exchange established in 1995. 2.Central Depository The only depository system for the transaction and settlement of financial securities, Central Depository Bangladesh Ltd (CDBL) was formed in 2000 which conducts its operations under Depositories Act 1999, Depositories Regulations 2000, Depository (User) Regulations 2003, and the CDBL by-laws. 3. Stock Dealer/ absorb it away factor Under SEC (Stock Dealer, Stock Broker & Authorized Representative) Rules 2000, these entities are licensed and they are jump to be a member of any of the two stock exchanges. At present, DSE and CSE have 238 and 136 members respectively. . Merchant Banker & Portfolio passenger vehicle These institutions are licensed to operate under SEC (Merchant Banker & Portfolio Manager Rules) 1996 and 45 institutions have been licensed by SEC under this rules so far. 5. Asset Management Companies (AMCs) AMCs are a uthorized to act as issue and portfolio manager of the mutual funds which are issued under SEC (Mutual Fund) Rules 2001. There are 15 AMCs in Bangladesh at present. 6. Credit Rating Companies (CRCs) CRCs in Bangladesh are licensed under Credit Rating Companies Rules, 1996 and now, 5 CRCs have been accredited by SEC. 7.Trustees/Custodians According to rules, all asset backed securitizations and mutual funds mustiness have an accredited trusty and security custodian. For that purpose, SEC has licensed 9 institutions as Trustees and 9 institutions as custodians. 8. Investment Corporation of Bangladesh (ICB) ICB is a specialized capital market intermediary which was established in 1976 through the ordainment of The Investment Corporation of Bangladesh Ordinance 1976. This ordinance has empowered ICB to perform all types of capital market intermediation that fall under jurisdiction of SEC. ICB has three subsidiaries 8. 1.ICB Capital Management Ltd. , 8. 2. ICB Asset Management Company Ltd. , 8. 3. ICB Securities commerce Company Ltd. Insurance Insurance sector in Bangladesh emerged after independence with 2 nationalized insurance companies- 1 life sentence & 1 ecumenical and 1 foreign insurance company. In mid 80s, private sector insurance companies started to enter in the industry and it got expanded. Now days, 62 companies are operating under Insurance Act 2010. Out of them- 18 are emotional state Insurance Companies including 1 foreign company and 1 is state-owned company, 44 General Insurance Companies including 1 state-owned company.Insurance companies in Bangladesh provide following serves 1. Life insurance, 2. General Insurance, 3. Reinsurance, 4. Micro-insurance, 5. Takaful or Islami insurance. Micro Finance Institutions (MFIs) The member-based Microfinance Institutions (MFIs) constitute a rapidly growing segment of the Rural Financial Market (RFM) in Bangladesh. Microcredit programs (MCP) in Bangladesh are use by various formal financial institutio ns (nationalized commercial banks and specialized banks), specialized government organizations and Non-Government Organizations (NGOs).The growth in the MFI sector, in terms of the number of MFI as well as total membership, was phenomenal during the 1990s and continues boulder clay today. Despite the fact that more than a thousand of institutions are operating microcredit programs, but only 10 large Microcredit Institutions (MFIs) and Grameen Bank represent 87% of total savings of the sector and 81% of total striking loan of the sector. by the financial attend tos of microcredit, the execrable pack are engaging themselves in various in summon generating activities and around 30 million poor people are directly benefited from microcredit programs.Credit services of this sector can be categorized into six broad groups i) prevalent microcredit for small-scale self employment based activities, ii) microenterprise loans, iii) loans for basal poor, iv) agricultural loans, v) season al loans, and vi) loans for disaster management. Currently, 599 institutions (as of October 10 2011) have been licensed by MRA to operate Micro Credit Programs. But, Grameen Bank is out of the jurisdiction of MRA as it is operated under a distinct legislation- Grameen Bank Ordinance, 1983. Recent Developments in Financial Sector of BangladeshAutomation and Technological Development Banking sector experient remarkable progress in respect of automation in functioning in finishing several years. For the pro-active and forward-visioning approach of Bangladesh Bank, song of automation initiatives have been implemented in banking sector. These initiatives include To create a disciplined environment for borrowing, the automated Credit study Bureau (CIB) service provides credit related information for prospective and existing borrowers. With this improved and efficient system, risk management will be more effective.Banks and financial institutions may furnish credit information to CIB d atabase 24 by 7 around the year and they can access credit reports from CIB online instantly. L/C Monitoring System has been introduced for preservation and victimisation the all necessary information regarding L/C by the banks through BB website. This system allows the authorized users of banks to upload and download their L/C information. In terms of oblige 36(3) of Bangladesh Bank Order, 1972, all scheduled banks are subject to stage Weekly Statement of Position as at the close of business on every thorium to the Department of Off-site Supervision.This statement now is assumeted through on-line apply the web upload service of BB website within o3 (three) working days after the coverage date which is much more fourth dimension and grate efficient that the earlier manual of arms system. The e-Returns service has been introduced which is An Online gateway Service for Scheduled Banks to submit Electronic Returns using predefined template for the purpose of Macro Economy co mpend through related BB Departments. Online Export Monitoring System is used for monitoring export of Bangladesh. Through this service, Banks and AD Branches of Banks issue & reports export report. Bangladesh Automated Clearing House (BACH) started to work by replacing the ancient manual clearing system which allows the inter-bank cheques and similar type instruments to be to settled in instant manner. Electronic Fund Transfer (EFT) has been introduced which facilitates the banks to make bulk payments instantly and using least paper and manpower. The initiation of Mobile Banking has been one of the close noteworthy advancement in banking. Through this system, franchises of banks through mobile operators can provide banking service to even the remotest corner of the country. Almost every commercial bank is now using their own shopping center banking solution which has made banking very faster and efficient. drill of p dwellic money has much more increase in daily life transaction s. Full or partial online banking is now being practiced by almost every bank. Inauguration of internet trading in both of the bourses (DSE & CSE) in the country is the most significant advancement for capital market in last several years. Micro Finance Institutions submit their reports to the regulator through the Online Report Submission Tools for MFIs. institutional DevelopmentThrough the Central Bank alter Project, there have been a good number of achievements regarding the institutional development in BB which can be observed below The implementation of first step mental imagery Planning (ERP) has been a big step in automation of operational structure of BB. The establishment of Enterprise Data Warehouse (under process) will bring the integral banking and FI industry under a single engagement through which data sharing, reporting and supervision will enter in a new horizon. Bangladesh Bank now possesses the most informative and resourceful website of the country regarding economic and financial information. Internal networking system with required online communication facilities have been developed and in operation for the officers of BB. BB has hosted number of international seminars on different economic and financial issues over last several years. MRA was established in 2006 for bringing NGO-MFIs under supervision. For the pro active role of MRA, this sector (MFI) is now in a good shape regarding the accountability and regulation. For abolishing anomaly and victorious discipline in insurance industry, IDRA was established in 2011.In one year, IDRA has taken number of appreciable move to regularize this industry. After the massive crash of local bourses in 2010-2011, the executive body of SEC was redesigned in full and some good results have come after that. Regulatory Development Banking and FI industries have experienced diversified regulatory development over last few years Full implementation of Basel-II (International capital adequacy stand ard) accord has been in effect in both banking and FI industry. Guidelines on Environmental and Climate transport Risk Management for banks and FIs have been circulated.Policy guidelines on kibibyte Banking also have been issued. Guidelines on Stress scrutiny for banks and FIs have been issued which is aimed to assess the resilience of banks and FIs under different adverse situations. Number of Policy initiatives for Financial cellular inclusion has been undertaken. Banks have been asked to build up separate Risk Management Unit for comprehensive and intensive risk management. Banks have been instructed to create separate subsidiary for capital market operations and capital market operations of banks are now minutely monitored. Supervision has been increase to increase the participation of banks in Corporate Social Responsibility (CSR). For the efficient and timely action of BB, foreign exchange reserve of Bangladesh did not face any adversity during global financial turmoil of 2007-09. To meet international standard on Anti Money Laundering (AML)/Combating Financing of Terrorism (CFT) issues, guidelines for Money Changers, Insurance Companies and Postal Remittance have already been circulated. SEC has updated Public Issue Rules, 2006 and Mutual Fund Rules, 2001.Apart from that, numbers of AMCs, merchant banks and are Mutual Funds are permitted by SEC which has increased the participation of institutional investors. The trend of capital market research has been upwardly which indicates the potential of analytical investment decision. Insurance Act 2010 was formulated to meet demand of concurrent time for shifting the insurance industry in a better shape. Apart from that, several initiatives have been undertaken by IDRA for prohibiting the malpractices in the industry regarding insurance commission, agent, premium etc and corporate governance issues.Banks As on June 2011 Deposits AdvancesTotal Capital*No. of Branches 4115855. 50 Million3212848. 70 Million4 61697. 00 Million7772 FIs As on celestial latitude 2010 Deposits Loans and leasesAssetsShare Capital & ReserveNo. of Branches 94374. 80 Million321284. 87 Million251527. 34 Million44689. 29 Million115 Insurance As on December 2009 AssetShare CapitalReserve Life Insurance118020. 15 Million1245. 54 Million106098. 88 Million Non-Life Insurance42622. 90 Million6653. 83 Million12133. 30 Million Capital MarketMarket capitalisation of Dhaka Stock Exchange As on September 2011 any Listed Securities2,782,901Million All Listed Companies Shares2,202,274 Million All Listed Mutual Funds35,733 Million All Debentures576 Million All Listed Govt. T-Bonds537,381 Million All Listed Corporate Bonds6,937 Million MFIs As on June 2009 Total Outstanding Number of ClientsNumber of BorrowersNo. of Branches 1,21,881. 85 Million24. 77 Million19. 50Million 18,022 * Sum of Tier-I, Tier-II and Tier-II Capital ComponentsRelated article Padma Bridge