Session 2 - Part 2

what are the services that banks provide?( Slide-1)

 They can provide loans.
 They are tools for payment.
 They provide savings they provide investment and financial planning.
 They provide support to the government.
 They do cash management.
 They do investment and much in banking.
 They do mobile banking. All these mobile financial services like Bkash, rocket
they are all bank led. That means according to Bangladesh Bank policy if you
want to open a mobile financial service you have to be supported by a bank. So
Bkash is supported by BRAC bank rocket is supported by Dutch Bangla bank. So
far there is also new mobile banking Nagad which has come up recently which
has been validated by Bangladesh Bank. It is supported by the Bangladesh post
office
 they Do manage risk. They do online banking.
 Then banks do foreign exchange remittance. And also, it's safe keeping a
valuable thing. That means they provide the locks or lockers to keep the
valuables of individuals.
banks play in the economy (slide 2,3)
1. They play the role of the intermediation. That means the chance for savings into
loans.
2. They do the payment roll carrying out payments on behalf of customers through
checks credit cards debit cards electronic transfers.
3. They played the role of guarantor by paying off customer debts by issuing letter
of credit/LC.
4. They'll see they play the role of risk management by assisting customers to
assess their risk when they launch a project when they go into an investment or
when they apply for a loan.
5. Savings and investment. They manage customers long term financial goal.
They assist corporations and government to raise funds. For example, in this
 crisis of COVID 19, Bangladesh Bank, Bangladesh Bank means all the rest of the
banks and the government together have launched the stimulus packages.
6. Now they act as a safe keeping or certification of values role. They provide
safe and secure place for customer value both as they gave locker facility.
7. They take up the role of the agency role. they manage and protect customer
property.
8. And the policy to maintaining the policy set by the government and central
bank. Whatever regulations whatever policies the government and the central
bank approves the other banks follow no
competitors and banks( slide 4)
1. Credit Unions
2. Insurance companies and pension plans
3. Mutual Funds
4. Reals state developers and Mortgage companies.
5. Security brokers and dealers.
6. Check cashing firms, small vendors, finance companies, leashing service.
other financial institutions who are giving competition to banks for example credit
unions. Talked about that insurance companies’ mutual funds real estate developer’s
security broker and dealers. And finally, the small loan vendors, the microfinance
institutions. These are all competitors of banks. The specialized banks the banks that
operate in specialized areas usually people are looking for agricultural loans will go to
Krishi bank rather than go to city bank or Bangladesh bank .because they would get a
better deal in Krishi bank or specialized bank. So, these are the Competitors of bank.