What is Financial System?

1. MANAGEMENT OF FINANCIAL INSTITUTIONS (MFI)
Financial System in Bangladesh:
What is financial system?
It is a set of institutional arrangement through which
financial surplus in the economy are mobilized from
surplus units and transferred to deficit units.
What are the constituents of Financial System?
Financial In our financial system there are three
constituents, they are as follows:
1. Financial Institution
2. Financial Instruments
3. Financial Market

2. (MFI)
Introduction to Business of Financial Institutions:
Structure of Financial System of Bangladesh:
 Financial Institutions/ Intermediaries
 Financial Instruments
 Financial Markets

3. MANAGEMENT OF FINANCIAL INSTITUTIONS (MFI)
Regulators of Financial System:
1. MOF(APA)-Ministry of Finance
2. BB(MOU,CAMELS)-Central bank.
3. SEC-Security Exchange commission.
4. Acts-NI Act, AML Act, Artho Rin Act, Stamp Act etc.
5. Company Act- banking company act, sec act, Joint Stock co. and
Insurance co.
Banking Financial Institution:
 Central Bank-Bangladesh bank.
 Private Commercial Banks
 Public Commercial Banks
 Private Foreign Banks
 Specialized Financial Institutions

4. Non-Bank Financial Institution:
 Insurance Companies
 Investments Banks
 Financial Companies
 ICB.
 Merchant banks.
 Investment company.
Financial Instruments:
1.Money Market Instruments :
* Loan & advance.
 Treasury bills
 Commercial Papers
 Letter of Credit
 Banker Acceptance
 Certificate of Deposit
 Re-purchase agreement(REPO)
 DD,MT, PO, Cheque etc.
Management of Financial Institutions (MFI)