The Role of Financial Institutions in the Economic Development of Bangladesh

The Merriam Webster dictionary defines the noun “bank” as “an establishment for the custody, loan, exchange, or issue of money, for the extension of credit, and for facilitating the transmission of funds.” In essence it is an institution that serves as a medium of flow of funds between users and savers. A bank is a financial institution that links the flow of funds from savers to users and back. For the purpose of this audit report we will broadly classify banks into two major categories: commercial banks and investment banks.

NGOs want to be able to provide services to the people that cannot a lot of time provide for themselves on levels of education, health, environmental living conditions and so forth. NGOs will research and analyze information in a particular area(s) of interest and bring aide is ways that those may not be able to provide for themselves or provide services in order for them to improve.

Bangladesh, a developing country, is relatively unknown in the globalized world and is often confused with its dominant neighbor, India. The country as we see it now did not exist even 50 years ago.

From a perilous beginning, Bangladesh has attained notable advancements in economic and social development in about four decades. Since it won its independent in 1971 following a bloody war, many, in the international community were doubtful about the country’s long-term economic sustainability. Some observers predicted a state of continuing aid dependency, while others believed if a country with such enormous and innumerable development problems as Bangladesh could make strides in development, then possibly other developing countries could as

The banking industry has over the years evolved from simple to large and complex organization. They have grown from one street building into having multiple branches some of which are international. Their clients range from individual and institutions to governments and other banks. Banks do not manufacture physical things. Their work is simply services for money (Koch & MacDonald 2010). Such services include storing, lending and managing money. All people and institutions, as well as governments, need money to operate accordingly.

Banks are institutions in which people put their money for safekeeping, to save, to use to pay their bills, or to earn interest on. Banks are allowed to use that money to make loans and earn interest for the bank's’ owners. Different types of banks offer different types of services. For example, commercial banks originally just served businesses, and savings banks and credit unions were used by individuals, especially those who couldn’t qualify for loans at regular banks. This is no longer the case. Although commercial banks and thrift institutions used to serve different purposes, today they all offer many of the same types of services including bank accounts, loans, credit, certificates of deposits (CDs), and much more.

Bond is the network for over 290 UK-based non-governmental organizations working in the international development and development education. The organization stresses the barriers to organizational learning as due to bias for action, failure to hold discussions, and lack of commitment. On the other hand, organizations may fail to grow due to political issues and these are most common in the United States. The writer then gives the solutions to these barriers, which among them are; changing the ways of thinking, transfer of

Lending institutions have been around since the late 1700’s. Banks are establishments that are authorized by the government to accept deposits, pay interest on deposits, clear checks, make loans, act as an intermediary in financial transactions and provide other financial services to customers.

Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money.

The rise has equally seen states mould some of their policies around the idea of trying to attract these NGO’s and transnational companies into their states. Tactics may include tax reductions or simply the promise of state perks. The states know that the NGO’s and transnational companies will help to bring with them prestige but also more importantly employment which will help their chance of staying in power as a major factor in elections is the economic situation in the country and this is what governments are ultimately judged on. Transnational companies now account for 70% of world trade which helps emphasize their importance to the economy. It can also be said that they bring technological advances around the world which can only really be deemed as a positive.

They argue that, many thinkers within the NGO world were mostly concerned with how these organizations would “adapt to the end of the funding boom and correct its adverse effects” yet the one major issue about the scope for introducing collective self-regulation of the organizational structure and procedures had largely been ignored. Hence corporate governance for NGOs attempt to describe how this scope could help solve some problems faced by NGOs in poor countries. The article was written in the late 1998 so perhaps some of these problems have since been addressed.

In came into vogue that economic theory could benefit Third World countries, so humanitarians began to evaluate the best ways to help Africa through the markets [Barnett 100]. Furthermore, leaps were made in bolstering the efficiency of aid efforts, and it was discovered that the most effective systems were conglomerations of the state and NGOs [Barnett 107-108]. This may suggest that humanitarian efforts were transformed into vehicles for disseminating governmental and economic agendas, but conversely, aid organizations wished to increase their impact by cooperating with governments and the markets. Humanitarians were growing to appreciate the codependence of these avenues and that “everything was connected to everything else,” so they leveraged this new insight to the Africans’ benefit [Barnett

Servicing as financial advisors, banks help customers manage their money by recommending different opportunities and serving as a securities intermediary.

Analysis of a long period (1947-1971) needed for the independence of Bangladesh is mainly depicted in this book. Analysis of why a

Bangladesh has got a population of around 150 million (2011) with a life expectancy at birth of around 63 years, and an adult literacy rate of 47.5%. The recent Human Development