Different types of financial institutions in Bangladesh - Bank Essay Example
Different types of financial institutions in Bangladesh:
Financial intermediaries and other financial institutions differ greatly in their relative importance within any nation’s financial system - Different types of financial institutions in Bangladesh introduction. There are different types of financial institutions in Bangladesh. Such as-
1. Commercial banks
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2. Insurance companies
3. Credit unions
4. Stock Brokerage Firms
5. Asset Management Firms
6. Finance & Leasing Companies
7. Building Societies
8. Mutual fund
9. Pension funds
10. Security Firms
11. Real estate investment trusts
12. Investment Banks
1. Commercial banks
An institution, which accepts deposits, makes business loans, and offers related services. Commercial banks also allow for a variety of deposit accounts, such as checking, savings, and time deposit. These institutions are run to make a profit and owned by a group of individuals. There are five types of banks in Bangladesh. 1) Central bank. Such as-
2) State owned commercial banks. Like –
3) Private commercial banks, Like –
United Commercial Bank Limited
Mutual Trust Bank Limited
BRAC Bank Limited
Eastern Bank Limited
Dutch Bangla Bank Limited
Dhaka Bank Limited
Islami Bank Bangladesh Ltd
4) Foreign commercial banks, Such as –
Standard Chartered Bank
Commercial Bank of Ceylon
State Bank of India
5) Specialized development Banks. Like –
Bangladesh Krishi Bank
Bangladesh Development Bank Ltd
BASIC Bank Limited
2. Insurance companies:
A company that offers insurance policies to the public, either by selling directly to an individual or through another source such as an employee’s benefit plan. An insurance company is usually comprised of multiple insurance agents. Generally, two types of insurance companies are in Bangladesh. Such as- 1) Life Insurance Company. Like-
Jiban Bima Corporation
National Life Insurance Co. Ltd.
Delta Life Insurance Co.Ltd
Express Insurance Ltd.
2) General Insurance. Such as-
Sadharan Bima Corporation
Agrani Insurance Company Limited.
Asia Pacific General Insurance Company Ltd.
Bangladesh General Insurance Co. Ltd.
3. Credit unions:
A Credit Union is a profit sharing, democratically run financial co-operative
that offers convenient savings and low interest loans to its members. The members own and manage their credit union themselves. One of the prominent credit union in Bangladesh is- The Co- operative Credit Union League of Bangladesh Ltd
4. Stock Brokerage Firms:
The stock brokerage firms are those entities that are responsible for helping the investors put their money in the stock market. However, the stock brokerage firms are also useful in many other ways, especially for the investors. There are many stock brokerage firms are available in Bangladesh. Such as- Al-Haja Jahanara Securities Ltd.
Al- Arafah Islami Bank Ltd.
Al- HajSecurities & Stocks Ltd
5. Asset Management Firms:
A company that invests its clients’ pooled fund into securities that match its declared financial objectives. Asset management companies provide investors with more diversification and investing options than they would have by themselves. There are some asset management firms in Bangladesh like- Institute of Safety, Security and IT Ltd (ISSIT)
LR Global Bangladesh Asset Management Company. Ltd
Race Asset Management Co. Ltd
6. Finance & Leasing Companies:
Finance company is an organization that originates loans for both businesses and consumers. Much like a bank, a typical finance company acts as a lending entity by extending credit. There are many finance and leasing companies are acting in Bangladesh. Some of those are – Industrial Development Leasing Company of Bangladesh (IDLC)
Infrastructure Development Company Limited (IDCOL)
GSP Finance Limited
Delta Brac Housing Finance Corporation Ltd.
Fidelity Assets & Securities Company Limited.
7. Building Society:
A building society is a financial institution owned by its members as a mutual organization. Building societies offer banking and related financial services, especially mortgage lending. The prominent building society of Bangladesh is – The Bangladesh House Building Finance Corporation
8. Mutual Fund:
A mutual fund is a type of professionally-managed collective investment scheme that pools money from many investors to purchase securities. While there is no legal definition of mutual fund, the term is most commonly applied only to those collective investment schemes that are regulated, available to the general public and open-ended in nature. Name of some mutual funds in Bangladesh are- 1st Bangladesh Shilpa Rin Sangstha MF (STBSRS)
AB Bank 1st Mutual Fund (ABB1STMF)
AIMS First Guaranteed Mutual Fund (AIMS1ST)
AIBL First Islamic Mutual Fund (AIBL1STI)
9. Pension funds:
A pension fund is any plan, fund, or scheme which provides retirement income. Some pension funds in Bangladesh are – Deposit Pension Scheme: Retirement Savings
Grameen Pension Savings
10. Security Firms:
Financial institutions that underwrite securities and engage in related activities such as securities brokerage, securities trading and making a market in which securities can trade. Nabiul Karim Securities Ltd.
Haji Mohammad Ali Securities Ltd.
GMF Securities Limited
Quaiyum Securities Ltd.
Dragon Securities Ltd
11. Real estate Investment Trusts:
A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. Real Estate investment firms in Bangladesh are – Quantum Properties Ltd.
Bondhan Living Limited
Arunima Propertise Ltd
S T Environs Development Ltd
12. Investment Banks:
It primarily helps net suppliers of funds transfer funds to net users of funds at a lowcost and with maximum degree of efficiency. Bay Leasing & Investments Limited.
Union Capital Ltd.
First Lease International Limited
Phoenix Leasing Co. Ltd