AN ANALYSIS ON CREDIT DISBURSEMENT AND RECOVERYOF JANATA BANK
CHAPTER-1 INTRODUCTION 1.1 THE BANKING SYSTEM OF BANGLADESH The financial system of Bangladesh consists of the Bangladesh Bank as the central bank, 4 nationalized commercial banks (NC'B), 5 government owned specialized banks, ,30 domestic private banks, 9 foreign banks and 28 non-banking financial institutions, and In addition, it embraces insurance companies, stock exchanges and co-operative banks. The Bangladesh Bank, as the central bank, has legal authority to supervise and regulate all the banks. It performs the traditional central banking roles of note issuance and of being banker to the government and other banks of different categories. It formulates and implements monetary policy manages foreign exchange reserves and supervises banks and non-banking financial institutions. Its prudential regulations include minimum capital requirements, limits on credit concentration and insider borrowing and guidelines for asset classification and income recognition. The Bangladesh Bank has the power to impose penalties for non-compliance. Further, it intervenes in the management of a bank if serious problems do arise. Last but not the least; it also has the delegated authority of issuing policy directives regarding the foreign exchange regime.