Specialized banks (Meaning, Functions and Advantages)
Definition/Meaning of Specialized banks
The specialized banks are defined as those banks that are banking operations that serve a specific type of economic activity, such as industrial activity or agricultural or real estate, in accordance with the resolutions of their establishment, which does not have to accept demand deposits of the main aspects of it activities.
Functions of specialized banks:
Specialized banks shall win the following foremost functions
1. To imagine the fixed operating rules also methods force accordance veil the cinch financial regulation;
2. To comply loans to enterprises direction trade cache depict policies further plans;
3. To take outermost induce rate floats within the prescribed range;
4. To equal responsible considering fund management within confess system;
5. To exertion clout trough credits and agreement of accounts;
6. To exertion cash control due to account holding institutions in assent with make clear regulations;
7. To enterprise curb on payroll pay of its account holding institutions in accordance with recite regulations.
8. To perform working beyond compare of state owned enterprise below the authorization of the P.B.C.
Advantages of specialized banks
1. It is the institutions and no Dauaah, any specialized banks that do not rely on financial resources on deposits of individuals, as in the case of commercial banks, but depends on the capital and issued the bonds.
2. Its linked with a doomed, that specialized banks cannot expand in various activities, but within the limits of its financial resources are not business such as banks can invest money customers.
3. Most of the loans granted by the relatively long deadlines, where most of the specialized banks employing resources in long term loans, and so contrary to what is the case of commercial banks, which ruled in this regard term money deposited by customers.
4. Specialization in finance certain economic activity, Banks specialized as is clear from the call majoring in finance certain activities where we find the industrial banks holds the industrial sector financing task, agricultural banks, majoring in finance agricultural sector banks and real estate specially finance the construction industry, housing and utilities or contribute.
5. Often focus on the achievement of economic and social development, nor is it a key profit target, so they are owned by the state in most cases.
Some specialized banks name of Bangladesh
1. Bangladesh Development Bank Limited.
2. Bangladesh Krishi Bank.
3. Rajshahi Krishi Unnayan Bank.
4. Karmasangsthan Bank.
5. Probashi Kallayan Bank.
6. Palli Sanchay Bank.
7. Grammen Bank.
8, Ansar- VDP Unnayan Bank.
9. Bangladesh Samabaya Bank Ltd.
10. The Dhaka Merchantile Co-operative Bank Ltd.
11. Progoti Co-operative Land Development Bank Ltd. (Progoti Bank)