Initiative for Entrepreneurship Development
Functions of Central Bank:
1. Formulating and implementing monetary and credit policies.
2. Regulating and supervising of banks and non-bank financial institutions, promotion and development of domestic financial markets
3. Managing the country's international reserves
4. Issuing currency notes
5. Regulating and supervising of the payment system
6. Acting as banker to the government
7. Preventing money laundering
8. Collecting and furnishing of credit information
9. Implementing the foreign exchange regulation act
10. Managing a deposit insurance scheme
2. Mention some non-banking financial institutions in Bangladesh.
IPDC Finance Limited, IDLC Finance Limited, MIDAS Financing Limited, Prime Finance Limited, LankaBangla Finance Limited.
3. Write differences between bank and non-banking financial institutions.
Differences between a bank and a non-banking financial institution are:
Banks are the traditional institutions that handle deposits and extending credit. But, these are not the only place that performs these functions. Non-banking finance companies do not have a full banking license, do not provide all of the services that an individual bank provides, and are not subject to the same regulation.
Comparison Chart
Basis for Comparison
|
NBFC
|
Bank
|
Meaning
|
An NBFC is a company and provides banking services to people without holding a bank license.
|
A bank is a government authorized financial intermediary and aims at providing banking services to the general public.
|
Incorporated under
|
Companies act,1956
|
Banking regulation act, 1949
|
Demand deposit
|
Not accepted
|
Accepted
|
Foreign investment
|
Allowed up to 100%
|
Allowed up to 74% for private sector banks
|
Payment and settlement system
|
Not a part of the system
|
An integral part of the system
|
Maintenance of reserve ratios
|
Not required
|
Compulsory
|
4. True-False
a. There are 6 state-owned commercial banks in Bangladesh.
b. IDLC is the best financial contributor in SME.
c. There are four factors of production.
d. SME is a rapidly increasing sector.
e. SME is related to the enterprise.
f. Dr. Atiur Rahman created SME on 31 December 2009.
g. Refinance means reinvestment.
h. The acronym of JICA is the Japan International Cooperation Agency.
5. Mention factors of production.
Land, labor, capital, entrepreneurship.
6. Write down policy measures of SME.
Policy measures of SME:
a. Target-based credit initiative
b. Priority to women
c. Dedicates desk to SME and open entrepreneurs
d. Refinance scheme: 50% reserve for women, up to BDT 2,50,000 personal guarantee is risk-free.
e. Monitor cell establishment
7. Write down types of refinance scheme.
Types of refinancing scheme:
a. Bangladesh Bank Fund: Loan is provided for small enterprise development. The amount of loan is BDT 600 crore. Given minimum loan is BDT 10,000 and the maximum is BDT 3 lakh on 10% interest.
b. Bangladesh Bank fund for Women: $6.43 billion is allotted for women. The initiative year is 2009 and the loan is given to 9 thousand enterprises on interest rate 10%.
c. Agro-processing refinances scheme: It is allotted for those enterprises which are outside Dhaka and Narayanganj. The initiative year is 2001. The starting amount is BDT 1 billion.
d. ADB fund-It is a joint of Bangladesh Bank and ADB. It is allocated for small and medium enterprises. It makes easy medium and long term investment. $95 million loans are invested outside Dhaka and Chittagong enterprises. $76 million comes from ADB and $19 million comes from Bangladesh Bank. The initiative year is 2009.
e. JICA: It is a collaboration between Japan and Bangladesh. The initiative year is 2011. 500 million Japanese yen is invested in the refinance scheme and partners of this collaboration are 21 banks and 18 non-banking financial organizations from Bangladesh.
f. Equity Entrepreneurship Fund
g. Refinance Scheme for Renewable energy and environmentally friendly industry
0 Comments