Bangladesh Bank Case Study

8092 Words 33 Pages
A bank is a financial institution that collects society’s additional cash and gives a part of that as loan to investors for earning profit. It is a mediator organization that makes relationship between the owner of additional savings and the investor of scarcity capital.
Bank receives money from the depositors relatively lower interest payment and grant short term and long-term loans to the borrowers with high interest. In this process, the difference between these two interests is the bank’s profit. To be a bank it must be authorized by the Central Bank.

The central bank is different from other bank. The Central Bank is the highest monetary authority in a country. The central bank plays an important role in keeping prices stable and stabilizing
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Bangladesh Bank is performing the role to formulate monetary policy in Bangladesh. Bangladesh Bank is the key player in the financial sector management on behalf of the government in Bangladesh. It adopts monetary policy to regulate the financial sector. Creation of money, maintain monetary base for money supply by using its operating instruments are the prime responsibility lies on Bangladesh Bank.

Here is my Assignment on “Understanding central bank and the role of Bangladesh Bank as central bank in formulating monetary policy and its management”. This report is an output of my performed activities and assigned works. At first I have tried to discuss about introduction of the study, objectives and methodology of the study. Then I have tried to discuss general concept of central bank and overview of Bangladesh bank. After that I explained the role of Bangladesh Bank as central bank and its various tools for the management of monetary policy in Bangladesh. And finally I have put the conclusion.
2. Objective of the Study
The main objective of the study is to know about the role of Bangladesh bank in monetary policy used in our country. There are some additional objectives also. These are:-
a) To understand the concept of central bank and its nature;
b) To know about Bangladesh bank and its functions;
c) To know about monetary policy and its
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With a view to making good of the economic imbalance and crisis situations, central bank takes necessary measures for stabilizing the price level.
e) Employment opportunities: Bangladesh bank takes initiatives for creating employment opportunities by means of credit control mechanism.

7.3. Expansion and development functions:
1. Development of agriculture sector: Bangladesh bank formulates policy for expansion of agricultural-sector for the purpose of economic up-liftments in the country.
2. Development of industrial sector: For the overall growth and development of industry, Bangladesh bank formulates policy.
3. Development of natural resources: Bangladesh bank plays a vital role for tapping natural resources which may lead to economic growth.

7.4. Other functions:
a) Adviser and representatives of government: Bangladesh bank advises government on economic issues and sometimes acts as a representative of the government.
b) Economic research: Bangladesh bank conducts various economic research works and formulates policies for economic development. It also conducts survey on different economic issues for knowledge of the general public of the

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