FINANCIAL SYSTEMS

OF BANGLADESH AND
PAKISTAN

A Comparative
Analysis

GROUP MEMBERS
Name

ID. No.

Md. Faruk Hossain

17-031

Khaled Bin Amir

17-043

Solaiman Islam

17-014

Mohammad Shahnewaz Hossain

17-066

Shama Das

17-015

SHAMA DAS

ID. No. 17-015

FINANCIAL SYSTEM
A financial system is a system that allows the exchange of funds
between lenders, investors, and borrowers conveniently.
Money, Credit and Finance are used as medium of exchange.
Channeling of funds can be conducted directly or indirectly.
Modern Financial System includes Participants, Financial Markets,
Financial Instruments and Financial Services.

CONSTITUENTS OF
FINANCIAL SYSTEM

MD. FARUK HOSSAIN

ID. No. 17-031

MONEY MARKET OF
BANGLADESH

MONEY MARKET OF
PAKISTAN

SOLAIMAN ISLAM

ID. No. 17-014

FUNCTIONS OF CENTRAL BANK

Bangladesh Bank

State Bank of Pakistan

NOTE ISSUE
Bangladesh Bank

State Bank of Pakistan

Currency issues, onerupee coins two-rupee

coins and subsidiary coins
Notes issued by the central bank and coins issued by the
Government

Issues "Commemorative
(Yadgari)" notes

CREDIT CONTROL
Bangladesh Bank

State Bank of Pakistan

Open Market Operation

Direct Instruments
Credit Budgeting

Quantitative control

Qualitative control

Indirect Instruments

REGULATIONS AND SUPERVISION

Bangladesh Bank

State Bank of Pakistan

Prudential Regulations
Collects information from commercial bank and take necessary decision by two
ways- a) Bank examine and b) Bank regulation.

Off-site surveillance Periodic returns

On site inspection- Check assets and liabilities

Both on site and off site supervision has been done by BB

Gives directions

BANKERS BANK
Bangladesh Bank

State Bank of Pakistan

Commercial Banks have access to BB

Insist that the other banks hold non-interest bearing reserves with in

Keeps the deposits of commercial banks

proportion to their deposit

Provides extensive remittances facilities

Clearing House

Manages the operations of clearing houses

BANKER TO THE GOVERNMENT

Bangladesh Bank

State Bank of Pakistan

Accepts the deposits of cash, cheques and drafts by the

Government
Advising the Government on Monetary Policy
Federal and Provincial governments can obtain advances from
Raising Money for the Government

the Bank

Revenue Collection

Undertakes sale/purchase of gold, silver, approved foreign

Keeping the Government Account

exchange, securities or shares in any company, transaction of

securities etc. on behalf of the govt.

ISLAMISATION OF THE BANKING SYSTEM

Bangladesh Bank

State Bank of Pakistan

Bangladesh Bank provides guidelines

Separate research department working on economic system of Islam

No separate regulatory authority

Islamic Banking Division

MOHAMMAD
SHAHNEWAZ
HOSSAIN

ID. No. 17-066

BANKS IN OPERATION
Bangladesh

Banks are divided into

Pakistan

Banks are divided into

- Scheduled bank

-Scheduled bank

- Non-scheduled bank

- Non-scheduled bank

Scheduled Banks
60

Non-scheduled Banks

56

50

Non-scheduled Banks
46

40
3
30

20

10

0
Bangladesh

Pakistan

Bangladesh

Pakistan

STRUCTURE OF SCHEDULED
BANKS (BANGLADESH)

STRUCTURE OF SCHEDULED
BANKS (PAKISTAN)

FIGURE TO COMPARE
Area of comparison

Bangladesh

Pakistan

Capital requirement

10% of all risk weighted

assets
( 400 tk. crore under bank
company act)

10% of all risk weighted

assets (Rs. 23 billion under
bank company act)

Liquidity

CRR 6.5% and SLR 19.5%

(including CRR)

CRR 5% and SLR 15%

(excluding CRR)

No. of Branches ( for every

100,000 adults)

8.2

9.4

AVERAGE DEPOSIT INTEREST

RATE
Average Deposit Interest Rate

14
12
10
8
6
4
2
0
2008

2009

2010

2011
Bangladesh

2012
Pakistan

2013

2014

AVERAGE LENDING
INTEREST RATE
Average Lending Interest Rate
18
16
14
12
10
8
6
4
2
0
2008

2009

2010

2011
Bangladesh

2012
Pakistan

2013

2014

KHALED BIN AMIR

ID. No. 17-043

CAPITAL MARKET IN BD

CAPITAL MARKET IN PAKISTAN

CAPITAL MARKET
PARTICIPANTS IN BD.

PARTICIPANTS IN PAKISTAN CAPITAL

MARKET

Individual
investors Mutual
funds, insurance

CM. INSTRUMENTS IN BD.

CM. INSTRUMENTS IN PAK

TRADING MECHANISM IN BD.

A,B,G & N-Category
Companies:

valid only for Z group

instruments

TRADING IN PAK CM.

INDICES