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Resources Articles Common Articles Roles of Commercial Bank
Resources Articles Common Articles Roles of Commercial Bank
| Roles of Commercial Bank |
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Here a brief discussion on different roles of commercial banks. Contribution to economic development: While many people believe that banks play only narrow roll in the economy taking deposit and making loans the modern banks has bad to adopt new roles to remain competitive and responsive to public needs. Baking’s principal roles today are as follows: The intermediary role: Transforming saving received primarily from household into credit for business firm and others in order to make investment in new building, equipment and other goods. The payment role: Carrying out payment for good and services on behalf of their customers. The guarantor role: Standing behind their customers to pay off customer debts, when those customers are unable to pay. The risk management role: Assisting customer in preparing financially for the risk of lost to property and persons. The saving / investment advisers role: Aiding customers in fulfilling their long rang goals for a better life by building, managing, and protecting savings. The safekeeping/certification of value role: Safeguarding a customer’s valuables and appraising and certifying their true market value. The agency role: Acting on behalf of customers to manage and protect their property or issue and redeem their securities. The policy role: Saving as a conduit for govt. policy in attempting to regulate the growth of the economy and pursue social goals. Other indirect roles: Bank deposit is increased by Tk. 8610 crore (5.9%) to Tk.. 154423 crore during October to December, 2005 compared to increased of Tk. 3194 crore (2.2%) and Tk. 7421 crore (6%) respectively. During the previous quarter and corresponding of the preceding year. Employment generator: Types of Bank No. of branches Total Employee Year 2003 2004 2003 2004 NCBs 3397 3388 58630 57588 DFI 1314 1328 16420 15877 PCBs 1510 1550 31905 34343 Foreign 32 37 1502 1582 Total 6253 6303 108457 109390 Source: Bangladesh Bank Annual Report, 2005, Page: 36 For export growth: Growth of the bank credit up to 2005 in crore PCBs Year Advances Import and Export Total Bank Credit 1994-95 32327 1121 33448 1995-96 36758 1233 37991 1996-97 40792 1682 42474 1997-98 46257 2005 48262 1998-99 52380 2040 54420 1999-00 57474 2271 59745 2000-01 66365 3524 69889 2001-02 75000 3639 78639 2002-03 83446 4223 87669 2003-04 92221 7060 99281 2004-05 108860 8295 117155 Source: Bangladesh Bank Bulletin Volume: XXXIII Nuber 4 Oct-Dec, 2005 page106. Total export receipt up to 2005: (in crore) Year Cash 2000-01 31419 2001-02 30936 2002-03 33243 2003-04 40581 2004-05 50731 Source: Bangladesh Bank Bulletin Volume: XXXIII Nuber 4 Oct-Dec, 2005 page.258 |