WELCOME TO OUR

PRESENTATION
 Group Members

Md. Rakibul Islam Md. Miskat Hossain Kaberi Saha Ayan Chakraborty
ID: 211326545 ID: 211326519 ID: 211326562 ID: 211326518

Rakibul Hassan Harunur Rashid Krishna Saha

ID: 211326522 ID: 211326563 ID: 211326529
 What is Banking?
Banking consists of many activities that can be
done through a number of financial institutions
that accept deposits then use this money for loans.
Commercial banks provide services to private
individuals and businesses.
Retail banking provides credit, deposit, and
money management to individuals and families.
 Some instances of Banking
Community Banking
Community banks are smaller than commercial banks. They
concentrate on the local market
Internet Banking
Internet banking provides these services via the world wide web.
The sector is also called e-banking, online banking, and net
banking. Most other banks now offer online services. 
Investment Banking
Investment banking finds funding v for corporations
through initial public stock offerings or bonds. They also facilitate
mergers and acquisitions.
 Some instances of Banking
Merchant Banking
Merchant banking provides similar services for small
businesses. They provide mezzanine financing, bridge
financing, and corporate credit products.

Sharia Banking
Sharia banking conforms to the Islamic prohibition
against interest rates. borrowers profit-share with the
lender instead of paying interest.
 Several Baking Terms
1. REPO RATE
When BB provides a loan to the other scheduled bank for short-term between
1 to 90 days, BB takes some interest from the bank which is termed as Repo
Rate. Current Repo rate is 5.75%.
2. REVERSE REPO RATE
When bank deposit it's excess money in BB then BB provides some interest to
that bank. This interest is known as Reverse Repo Rate. Current reverse repo
rate is 4%.
3. CALL MONEY
Call money is a short-term, interest-paying loan made by a financial
institution to another financial institution. When money is lent for a day it is
known as Call Money.
 Several Baking Terms
4.NON PERFORMING ASSETS
 NPA is an asset of a bank which is not producing any income.
 Bank Usually classify as nonperforming assets any commercial loans which are
more than 90 days overdue and any consumer loans which are more than 180 days
overdue.
5. GREEN BANKING
• Green banking means promoting environmentally friendly practices and reducing
your carbon footprints from your banking activities.
• Green banking aims at improving the operations and technology along with making
the clients habits environment-friendly in the banking business.
• It is like normal banking along with the consideration for social as well as
environmental factors for protecting the environment.
 Banking terms
6. MONEY LAUNDERING
• Money laundering is a process of conversion of illegal money from various sources
to appear to have originated from legitimated (Legal) source.
• The major sources of illegal money are tax evasion, bribe, Smuggling etc.

7. BILL OF EXCHANGE
• A bill of exchange is a non- interest bearing written order which is used primarily in
foreign trade which binds one party to pay a fixed amount of money to another party
at a decided future date.
• A bill of exchange is signed by the creditor and accepted by a debtor.
 Banking terms
8.CASH RESERVES RATIO
• Every bank Maintain certain % of their total deposits with BB in the form of Cash and
Net demand & Time Liabilities.
• Current CRR is 4%. Every Bank has to pay the amount to BB on every 15 Days.
9. BANK RATE
• Bank rate is also termed as “Discount Rate”
• The rate through which BB charges certain % for providing money to other banks
without any security for a Long period of time for 90 Days & Current Bank Rate is 4%.
10. LETTER OF CREDIT
• The letter of credit is one of the negotiable instrument.
• It is given by the bank, that guarantee’s buyer’s payment to the seller shall be
received on time along with the proposed amount to be paid.
 Banking terms
11. THE BALANCE OF TRADE
• The difference between the country’s exports and the value of its imports are
known as the Balance of Trade.
• It normally incorporates trade in services unless mentioned as the balance of
merchandise trade.
• It includes earnings (interest, dividends, etc.) on financial assets.
12. BALANCE OF PAYMENTS
• A list that states a country’s transactions with other countries for a certain time
period (generally 1 year).
• Payments into the country (receipts) are entered as positive numbers, called credits.
• Payments out of the country (payments) are entered as negative numbers called
debts.
 Banking terms
13. INSOLVENCY
• An organization, a family, person, or company is declared as insolvent when they are unable
to pay their debts back on time.
• One of the most common solutions for insolvency is bankruptcy.
14. BANKRUPTCY
• Bankruptcy is a legal declaration of a person who is unable to pay off debts.
• In generally, Bankruptcy is of two types- Reorganization and Liquidation bankruptcy.
• Under the bankruptcy of reorganization, debtors should restructure their bill plans to make
them more easily met.
15. AMORTISATION
• Amortization is a periodic payment of debt like a loan or a mortgage.
• Amortization is the arrangement of a lump sum cash flow into many periodic instalments
over a span of time, which is also called amortization agenda.
 Banking terms
16.FDI
Foreign Direct Investment is when persons/companies who/which are non-
Bangladeshi, invest in Bangladeshi companies.
Also important to know is that there are two ‘routes’ of FDI, namely,
Automatic Route (does not require BB or CG approval) and the Government
Route (requires the approvals for those not covered under the automatic
route).
17. OFF-BALANCE SHEET EXPOSURE
Off-Balance sheet exposure refers to activities that are assets or liabilities of
an entity which doesn't appear on the balance sheet. Example: Letter of the
undertaking, Letter of credit etc.
 Banking terms
18. CREDIT RATING
‘Credit rating’ is the assessment of the creditworthiness of a borrower
or a loan taker; creditworthiness refers to the ability of a borrower to
‘service the loan’, i.e., pay back the loan along with the interest.
19.BASIS POINTS
A unit that is equal to 1/100th of 1%. Often used in quotation of spreads
between interest rates or to change in yield in securities.
20. CORPORATE GOVERNANCE
The process by which corporations are directed and controlled. It is
concerned with the rights and responsibilities among stakeholders used
to determine and control the strategic directions and performance of
the corporation.
 Banking terms
21.CREDIT RISK
The risk of loss due to non-payment of a loan or other line of credit
(either the principal or interest or both), by the borrower or a
counterparty.

22. TREASURY BILLS

•Issued by BB on behalf of govt. 
•Govt uses them to meet their short-term liquidity crunch. 
•T-bills are sovereign zero risk instruments. 
At present, 3 types of T-bills are there :  91-day,182-day, 364-day. 
•State govt can not issue T-bills.
 Banking terms
23. DERIVATIVES
A financial instrument, the price of which has a strong relationship with an
underlying commodity, currency variable or financial instrument.
24. NOSTRO ACCOUNT
A nostro account is a bank account held in a foreign country by a domestic
bank, denominated in the currency of that country.
25.VOSTRO ACCOUNT
A local currency current account maintained with a bank by another bank
26. CERTIFICATE OF DEPOSIT
Issued by scheduled commercial banks and other financial institutions. 
Issued at a discount to face value, the discount rate is negotiated between
issuer and investor. 
 Banking terms
27. COMMERCIAL PAPER (CP)
•These are unsecured promissory* notes issued by large corporates, primary
dealers, satellite dealers and all FIs. 
•Maturity period is between 7 days up to 1 year from date of issue. 
•CPs need to have a credit rating from a credit rating agency.
28. SWAPS
The simultaneous purchase and sale of foreign exchange or securities, with the
purchase executed at once and the sale back to the same party. Carried out on
an agreed upon price to be completed at a specified future date. Swaps include
interest rate swaps, currency swaps and credit swaps.
29. TIER 1 CAPITAL
Consists of the sum total of paid up ordinary shares, non-cumulative, non-
redeemable preference shares, share premium, statutory reserve fund, published
retained profits, general and other reserves, less intangible assets and other
deductions.
 Banking terms
30. TIER 2 CAPITAL
Consists of the sum total of revaluation reserves, general provisions, hybrid
capital instruments and approved subordinated debentures.

31. Value at Risk (VaR)

Estimated maximum loss that the Bank may incur in a given horizon at 99%
confidence level.

32. SLR –(STATUTORY LIQUIDITY RATIO)

Every bank has to maintain a certain % of their total deposits in the form of
(Gold + Cash + bonds + Securities) with themselves at the end of every business
days. Current SLR is 13.00%. 
 Banking terms
33. IPO- INITIAL PUBLIC OFFERING
The first sale of a company's shares to the public, also known as a stock market
listing or flotation. Often used as a means for a young company to raise capital
to expand.

34. JUNK BOND 

Risky investments which can offer higher yields than safer bonds. Often issued
by companies with a low credit rating as investors demand higher rewards as
compensation for the risk of investing in them.

35. LIQUIDITY
The measure of how quickly an investment can be turned into cash. A mutual
fund generally is considered a very liquid investment, because shares can be
redeemed at any time. In contrast, a house is a very illiquid investment.
 Thank you
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