functional differences between a bank and non-bank financial institution part 1
TRANSCRIPT
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Functional differences between a bank and non-bank financial institution.
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Financial Institution and Markets
Tropic: Assignment on Functional differences between a bank and non-bank financial institution.
Supervised ByAfiya Akter
Assistant ProfessorDepartment of Business Administration
Submitted To:Department of Business Administration
Northern University Bangladesh
Submitted By:
Section- A
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Sl No Name ID
01 S.M. Al-Shahriar BBA 120304790
02 Md. Momin Mia BBA120304783
03 Amit Hasan Prince BBA120304808
04 Md. Yeasin BBA120304781
Submission Date: 22-08-2015
LETTER OF TRANSMITTAL
22 August, 2015
Afiya Akter
Assistant Professor
Department of Finance
Northern University Bangladesh
Subject: Submission of Report.
Mam, It is our pleasure to submit the report, which is done as a part of academic curriculum, to you for your kind evaluation. The report is prepared on “Functional difference of a bank and non-bank finance organization”. We have put our best effort in preparing this report and to make it a worthy one. Each aspect of the problem is considered and studied as required. If any confusion arises or any further explanation is needed, we will be readily available to explain the matter to you, as the situation required.
Sincerely yours,
______________________
Sl No Name ID
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01 S.M. Al-Shahriar BBA 120304790
02 Md. Momin Mia BBA120304783
03 Amit Hasan Prince BBA120304808
04 Md. Yeasin BBA120304781
Abbreviation
ATM- Automated teller machine
BACH- Bangladesh Automated Clearing House
BACPS- Bangladesh Automated Cheque Processing System
BEFTN- Bangladesh Electronic Fund Transfer Network
CSR- Corporate social responsibility
DBBL- Dutch Bangla Bank Limited
DRS- Disaster Recovery Site
FBPAR- Exporter's FC Deposit
ICT- Information Communication Technology
IT- Information Technology
IPDC- Industrial Promotion and Development Company
MIS- Management Information System
MICR- Magnetic Ink Character Recognition
MOU- Memorandum of Understanding
NBFC- Non-Banking Finance Companies
NBFI- Non Bank Financial intermediaries
NFCD- Non-Resident Foreign Currency Deposit
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REFL- Reliance Finance Limited
SIT- System Integration Test
SME- Small & Medium Enterprise
TD- Term Deposit
Table of Content:
SL Topic Page
01 Title Fly i
02 Title Page ii
03 Letter of Transmittal iii
04 Abbreviation iv
05 Table of content v
06 Executive summary vi
07 Chapter 1 1-5
08 Chapter 2 6-14
09 Chapter 3 15-26
10 Chapter 4 27-47
11 Chapter 5 48
12 Chapter 6 49-50
13 References and Appendix 51-52
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Executive Summery
The present report is designed to provide an insight into the Bangladeshi Financial System in its composition, status, evolution, functional arena besides the nexus between the financial system and economic development. The operational profile, the growth focus, the Dimensions of business volume over the years and also the financial Performance of the Banks and NBFCs in Bangladesh are also given a comprehensive focus to provide vital background peripheral to the study. An insight has also been given on recent financial sector reforms and its implications on the bank and non-Banking financial institutions.
The financial system facilitates transfer of funds, through financial institutions, financial markets, financial instruments and services. Financial institutions act as mobilisers and depositories of savings, and as purveyors of credit or finance. They also provide various financial services to the community. They act as intermediaries between savers and investors. All banks and many non-banking institutions also act as intermediaries, and are called as non-banking financial intermediaries (NBFI). Financial institutions are divided into the banking and non-banking ones. The distinction between the two has been highlighted by characterizing the former as “creators” of credit, and the latter as mere “purveyors” of credit.1 the banking system in Bangladesh comprises the commercial banks and co-operative banks. The examples of non-banking financial institutions are Uttara Finance and Investments Limited, Reliance Finance Limited, IDLC Finance Limited, LankaBangla Finance Ltd etc.
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Financial facilities are provided by Bank and non-bank financial institutions. But in our report we try to find the functional differences between them.