FINANCIAL INSTITUTION ASSIGNMENT Financial Institution Assignment



Financial Institution Assignment

Country Introduction

Bangladesh is one of the most densely populated and poorest countries in the world. Its predominantly agricultural economy, with over 60 percent of the population employed in the sector, is vulnerable to natural disasters such as flooding and cyclones. Within manufacturing, the textile and garment industry is the most dynamic and fastest growing sector. Bangladesh (officially called the People's Republic of Bangladesh) is South Asian countries located in the northeast of the Indian subcontinent bordered on the south by the Bay of Bengal. The country is almost entirely enclosed by the north-east of India and has a short border with Burma. The land area is 147,570 square kilometres, equivalent to about half that of Italy (Orr, 2007, 21). The capital and largest city in the country is Dhaka (about nine million inhabitants in the metropolitan area).

In spite of the poverty prevailing in the country but it is one of the country's rich forests, and forest occupies vast areas of fertile land, which is deployed by the farm and fruit trees, rubber plantations, and employs the majority of peasants from the country's population.

Location

Bangladesh is located in South Asia on the Bay of Bengal, between Burma and India, share a greater part of its border with India, where shares in its eastern, northern and western, and participates in the south-eastern borders with Burma, from the south, overlooking the Bay of Bengal.

General Information

Area: The area of Bangladesh, 144.000 km 2.

Population: The population of 150,448,339 people.

Capital: Dhaka

Language: The official language is Bengali language in addition to English.

Currency: taka

Religion: Muslims constitute about 83% of the total population and there are a Hindu, and others.

Bangladesh Banking System

The banking system of Bangladesh is dominated by the four state owned commercial banks, which together control more than 30% of deposits and operates 3383 branches (50% of the total). The number of banks remained unchanged at 48 in 2008. These banks had a total number of 6886 branches as of December 2008 (Bangladesh Association of Banks, 2006, 47). Noman Khan et al (2008, 87), conducted research to investigate the banking behaviour of Islamic bank customers in Bangladesh. They concluded significant relationship has been found between customer's age (mostly 25-35 years) and customer's usage of Islamic banking products such as current account, saving deposit, term deposit, savings bond and Bai-Salam. Significant relationship has been found between customer's usage product and services (ATM services, Bai Muajjal, Bai-salam, Musharka and shirkatulMeelk) and level of income. Results also showed a significant relationship between higher level of income and usage products such as saving bonds, saving deposits and Bai-salam.

UK Banking Industry

British banking sector, after the U.S. and Japan, is the third largest in the world and is considered more important in terms of efficiency, flexibility and return on capital. It provides services to 95% of the population with about 3.5% of the total workforce in Britain - more than one ...