Governor: Dr. Atiur Rahman took the helm of the central Bank of Bangladesh for four year tenure on May 1, 2009 as the 10th Governor of Bangladesh Bank, the country's monetary policy authority, financial sector regulator and supervisor.

Deputy Governors: Four Deputy Governors looking after the following sectors: Banking Regulation and Policy Department, Department of Financial Institutions and Market, Law Department, Credit Information Bureau Statistics Department, Monetary Policy Department , Foreign Exchange Policy Department, Expenditure Management Department, Common Services Department, Department of Banking Inspection -1

Board of Directors Executive Staffs General Managers

Bangladesh Bank was established as a body corporate vide the Bangladesh Bank Order, 1972 with effect from 16th December 1971 . All the members of he body must have experience and proven capacity in the fields of banking, trade, commerce, industry or agriculture - all nominated by the government. The broad objectives of the Bank are :

a) To regulate the issue of the currency and the keeping of reserves;b) To manage the monetary and credit system of Bangladesh with a view to stabilizing domestic monetary value;c) To promote and maintain a high level of production, and to foster growth and development of the country's productive resources for the national interest

The core functions of BB are briefly discussed as follows: a) BB formulates and implements monetary policy aiming at

stabilizing domestic monetary value and maintaining competitive external per value of taka for fostering growth.

b) BB formulates and implements intervention policies in the domestic money market and foreign exchange market.

c) BB, as the central bank of Bangladesh reserves sole responsibility to issue bank note

d) BB performs as a clearing house for the scheduled banks to clear and settle inter-bank payment arising through drawing cheque, drafts, bills, etc to one another.

e) BB acts as a banker to the government;f) BB functions as a lender of the last resort for the government as

well as for the country’s scheduled banks; g) BB acts as an advisor to the government;

Overview of Financial system of Bangladesh

The financial system of Bangladesh is comprised of two broad fragmented sectors:

Formal Sector, includes all regulated institutions like Banks, Non-Bank Financial Institutions (FIs), Insurance Companies, Capital Market Intermediaries like Brokerage Houses, Merchant Banks etc.; Micro Finance Institutions (MFIs).

Semi-Formal Sector, inludes SEC, House Building Finance Corporation, NGO, Grameen Bank

Monetary Policy: The main objectives of monetary policy of

Bangladesh Bank are: Price stability both internal & external Sustainable growth & development High employment Economic and efficient use of resources Stability of financial & payment system

Reserve Management Strategy: Bangladesh Bank maintains the foreign exchange reserve

of the country in different currencies to minimize the risk emerging from widespread fluctuation in exchange rate of major currencies and very irregular movement in interest rates in the global money market. BB has established Nostro account arrangements with different Central Banks. Funds accumulated in these accounts are invested in Treasury bills, repos and other government papers in the respective currencies. It also makes investment in the form of short term deposits with different high rated and reputed commercial banks.

Interest Rate Policy:

Under the Financial sector reform program, a flexible interest policy was formulated. According to that, banks are free to charge/fix their deposit (Bank /Financial Institutes) and Lending (Bank /Financial Institutes) rates other than Export Credit. Yet, banks can differentiate interest rate up to 3% considering comparative risk elements involved among borrowers in same lending category.

Exchange Rate Policy: The exchange rate policy of Bangladesh Bank aims at maintaining

the competitiveness of Bangladeshi products in the international markets, encouraging inflow of wage earners' remittances, maintaining internal price stability, and maintaining a viable external account position. Under the existing floating exchange rate regime (that started from 31/05/2003), the interbank foreign exchange market sets the exchange rates for customer transactions and interbank transactions based on demand-supply interplay; However, along with intervention in the taka money market, the US dollar purchase or sale transactions take place by the Bangladesh Bank as needed, to maintain orderly market conditions.

Foreign Exchange reserve Call Money Rate Share Price Index Export Import Tax Revenue L/C Opening Foreign/Local Debt Rate of Inflation GDP Bank Deposit Industrial & Consumer Loans

The financial system of Bangladesh consists of Bangladesh Bank (BB) as the central bank, government owned specialized banks, domestic private banks, foreign banks and non-bank financial institutions. The financial system also embraces insurance companies, stock exchanges and co-operative banks.

Bangladesh offers generous opportunities for investment under its liberalized Industrial Policy and export-oriented, private sector-led growth strategy. All but four sectors (i.e. (1) arms and ammunition and other defense equipment and machinery, (2) forest plantation and mechanized extraction within the bounds of reserved forests, (3) production of nuclear energy, and (4) mining  are open for private investment in Bangladesh.

Tax holiday Tax holiday facilities will be available for 5 or 7 years depending on the

location of the industrial enterprise. For industrial enterprises located in Dhaka and Chittagong Divisions ( excluding Hill Tract districts of Chittagong Division) the tax holiday facility is for 5 years while it is 7 years for locations in Khulna, Sylhet, Barisal, and Rajshahi, Divisions and the 3 Chittagong hill districts.

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Tax exemptions are allowed in the following cases:

* Tax exemption on royalties, technical know-how fees received by any foreign collaborator, firm, company and expert. * Tax exemption on income of the private sector power generation company for 15 years from the date of commercial production.

Industrial undertakings not enjoying tax holiday will enjoy accelerated depreciation allowance

Foreign Investment

Private investment from overseas sources is welcome in all areas of the economy with the exception of the four reserved sectors (mentioned earlier). Such investments can be made either independently or through venture on mutually beneficial terms and conditions. Foreign investment is, however, especially desired in the following major categories of industries:

*  Export oriented industries

*  Industries in the Export Processing Zones ( EPZs)

*  High technology products that will be either import substitute or export oriented.

Facilities/Incentives A)For foreign direct investment, there is no limitation pertaining

to foreign equity participation, i.e. 100 percent foreign equity is allowed. Non-resident institutional or individual investors can make portfolio investments in stock exchanges in Bangladesh.

B) A foreign technician employed in foreign companies will  not be subjected to personal tax up to 3 (three) years , and beyond that period his/ her personal income tax payment will be governed by the existence or non-existence of agreement on avoidance of double taxation with country of citizenship.

Other Incentives Citizenship by investing a minimum of US $ 500,000 or by

transferring US$ 1,000,000 to any recognized financial institution ( Non-repatriable ).

Permanent resident ship by investing a minimum of US$ 75,000 ( non-repatriable).

Special facilities will be provided to export-oriented industries 

under "Thrust sectors" . Thrust Sectors include Agro-based industries, Artificial flower-making, Computer software and information technology, Electronics, Frozen food, Floriculture, Gift items, Infrastructure, Jute goods, Jewellery and diamond cutting and polishing, leather, Oil and gas, Stuffed toys, Textiles, Tourism. Investment Protections / International Agreements