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Analysis of Changing Roles of Bangladesh Bank: Industrialization Perspective

In: Business and Management

Submitted By peter1987
Words 8807
Pages 36
Analysis of Changing Roles of Bangladesh Bank:
Industrialization perspective

1. Introduction The vision of the Bangladesh Bank is to develop continually as a forward looking central bank with competent and committed professionals of high ethical standards, conduct monetary management and financial sector supervision to maintain price stability and financial system robustness, support rapid broad based inclusive economic growth, employment generation and poverty eradication in Bangladesh. The mission is to formulate monetary and credit policies, manage currency issue and regulate payment system, manage foreign exchange reserves and regulate the foreign exchange market, regulate and supervise banks and financial institutions and advise the government on interactions and impacts of fiscal, monetary and other economic policies.

Bangladesh Bank maintains an interest rate structure that provides fair return on financial assets, supports growth in the real sector and promotes development of markets in bond and securities. The central bank provides precise prudential regulatory, risk management and disclosure framework to protect solvency and liquidity of individual institutions and stability of the overall financial system, acting as lender of last resort if and when needed. The central bank maintains liquidity conditions and credit policies ensuring adequate credit flows at market driven flexible interest rates for all productive economic activities, including in sectors like agriculture, SME, and where markets have not been very responsive. Bangladesh Bank fosters macroeconomic stability through monetary and external sector management. The bank promotes and supports development of new financial products, services and instruments. It maintains a secure and quick payment system for settlement of claims.

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