Whether a Bank can remove its business record outside Bangladesh or not? What are the difference between time and demand’s?-Discuss
Banks play very significant role in the financial life of the nation. The medical of the economy is closely related to the soundness of its banking system. Although banks compose no fresh riches but their credit, lending and related actions facilitate the process of presentation, distribution, exchange and consumption of wealth.
In this way they become very efficient allies in the process of financial development. Today, modern banks are very useful for the utilization of the resources of the country. The banks are mobilizing the savings of the citizens for the finance purposes. The savings are promoted and storing rate increases. If there would be no banks thereafter a great chip of funds of the rural would remain idle.
A bank as a substance of observation is just like a heart in the financial framework and the Capital gave via it is like blood in it. As lengthy as blood is in distribution the organs shall remain cries and healthy. If the blood is not provided to any organ thereafter that fraction would become useless. So whether the fund is not gave to Agriculture sector or industrial sector, it shall be destroyed. Loan facility gave via banks works as an stimulus to the producer to boost the production.
I shall negotiate whether a Bank Company can withdraw its commerce record outdoors Bangladesh or not. What are the difference between time and demand?
2.1. Central Bank:
The central bank has been reported as “the lender of final resort”, which mechanism that it is responsible for supplying its economy with funds as shortly as commercial banks cannot wrap a provide shortage. In other words, the interior bank prevents the country’s banking system from failing. However, the initial target of interior banks is to supply their countries’ currencies with price stability via disciplining inflation. A interior bank also acts as the regulatory leadership of a country’s monetary policy and is the sole provider and printer of letters and coins in circulation. Time has proved that the interior bank can best operate in these capacities via remaining independent from federal fiscal policy and hence uninfluenced via the political anxieties of any regime. The interior bank must also be fully divested of any commercial banking interests.
2.2. Objectives of Central Bank:
2.2.1. Promoting price stability in the euro area
The Bank promotes price stability in the euro field through participation via the Governor in the Governing Council of the European Central Bank (ECB). For this purpose the Bank conducts financial analysis and research. The Bank is also responsible for the implementation in Malta of the Governing Council’s monetary policy decisions.
2.2.2. Contributing to the stability of the commercial system
The Bank contributes to the stability of the commercial system through ongoing macro surveillance of the infrastructure, commercial institutions and markets and via monitoring and calculating the implications for commercial stability of financial and commercial developments, both domestically and in the euro area. As fraction of its early warning system, the Bank analyses information to diagnose origins of threat and checks the resilience of the commercial sector to defy eventual shocks. This approach is advocated via the growth of cries contextual for the administration of emergency cases and of contingency procedures. Ultimately, in command to safeguard commercial stability, the Bank acts as lender of final resort.
2.2.3. Promoting, regulating and supervising cries and efficient payment and securities settlement systems.
The Bank promotes, supervises and regulates the mission of, and the participation in, servant payment networks as well as any model of money or safety transactions, whether servant or cross-border. This role relates both to retail and wholesale payment networks, encompassing the instruments accustomed, and involve the establishment of policy and the monitoring of payment and securities settlement developments. In exercising its oversight role, the Bank promotes a competitive, safe and efficient payment services environment.
2.2.4. Supporting the growth of commercial markets
The Bank promotes and advocates the further growth of the servant commercial market with the focus of facilitating its silken and efficient integration into the Pan-European market.
2.2.5. Providing and promoting efficient currency services
The Bank releases euro bank letters and coins in accordance with the Treaty on the Functioning of the European Union and in queue with the Statute of the European System of Central Banks (ESCB) and of the ECB. The Bank is responsible for supplying letters and coins to encounter request from the public. The Bank also ensures the authenticity and quality of currency in distribution through the withdrawal of counterfeit and worn letters and coins.
2.2.6. Optimizing the returns on commercial resources through prudent finance practices
The Bank keeps and handles a portfolio of foreign and servant commercial assets. It seeks to maximize the return on commercial resources subject to prudent finance practices. The Bank is also responsible for doing its allocation of the pooled chip of the ECB’s possess foreign reserves.
2.2.7. Collecting, compiling, disseminating and printing statistics
The Bank compiles financial and commercial statistics in accordance with global standards. These are given to the ESCB and other global and servant users. Statistics are prepared available through the Bank’s regular books, its website, the books of the ECB and other global organizations.
2.2.8. Advising the Government usually on commercial and financial matters
The Bank acts as a consultant to the Government on commercial and financial matters. In offering independent advice, the Bank contributes to cries policy-making. The Bank is able to do this on the strength of its technology, its reputation and its independent status. The Bank also acts as banker and officer to the Government.
2.3. Activities of Central Bank:
|(a)||to actively participate in the Euro system, the ESCB and other relevant European Union bodies, encompassing their sub-structures, and in encounters of global organizations; and|
|(b)||to perpetuate efficient advocate and composure operates, which include:|
- Motivating and devising experienced staff. To this end the Bank embraces appropriate recruitment and prize strategies and provides its personnel with opportunities for training and development.
- Procuring the necessary resource inputs and preserving the organization’s physical infrastructure in a cost-effective manner to ensure a congenial and lock laboring environment.
- Maintaining a cries commercial composure system capable of delivering exact and timely statutory and administration knowledge and planned to ensure that the Bank’s lacks are efficiently welcomed within deployed budgets.
- Enhancing the flow of knowledge both within and outdoors the Bank. This is prepared possible through the maintained growth of knowledge and document-handling networks, and of the appropriate knowledge engineering infrastructure.
- Maintaining a threat administration contextual which provides a frequent methodology for the passport, calculation, reporting, monitoring and coverage of risks. This is complemented via a cries commerce continuity administration programme.
- Operating an independent and aim guarantee and consultancy operate planned to add quality and renew the Bank’s operations.
The Bank also seeks to be transparent and publicly accountable. This is achieved through the book of its commercial pronouncements, efficient communications and announcements through its website, other books and regular reporting to Parliament on its policies and operations.
3.1. Definition of Bank:
An organization, generally a corporation, chartered via a say or federal government, which does majority or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them; discounts notes, produces loans, and invests in securities; collects tests, drafts, and notes; certifies depositor’s checks; and issues drafts and cashier’s checks.
3.2. Types of Banks:
When you are beginning out as a fresh nonprofit, it is imperative to locate the bank that shall best suit your needs. Selecting a bank requires a fundamental comprehension of what the various breeds of banks currently do and why there are unlike breeds of banks. Keep in brain that as banking laws adjustment, so too shall the services a specified bank might offer.
3.2.1. Commercial Banks
A commercial bank works with businesses. Businesses have unique lacks that consumers do not have. For instance, several companies lack a commercial bank that can accommodate a great volume of credit card payments and money deposits. Commercial banks frequently also operate as retail banks, serving persons along with businesses.
Commercial banks generally supply fundamental services such as savings and testing bills, lends for real and funds purchases, queues of credit, alphabet of credit, payment and transaction processing, and foreign exchange.
3.2.2. Retail Banks
A retail bank works with consumers, otherwise known as retail customers, supplying fundamental banking services to the overall public, encompassing testing and savings accounts; certificates of deposit (CDs); safe deposit boxes; mortgages; auto, ship, and miscellaneous home-improvement loans; and unsecured and rolling lends such as credit cards. You majority frequently perceive retail banks on urban road corners; you possibly exert a retail bank for your physical testing account. In attachment to facilitating consumers, retail banks frequently serve companies, so they can also serve as commercial banks.
3.2.3. Credit Unions
Credit unions are nonprofit organizations possessed via the “members” or customers that traditionally Endeavour for service across profitability. These organizations have the same breeds of personnel as banks. Upper administration consists of a board of directors that produces decisions on credit union operations. This board is wrote of elected volunteers whoever are also credit union membership whoever want a say in the mission of the business.
Credit unions are needed to restriction their membership to citizens whoever have a frequent bond. This bond may be geographic, priestly, or vocational, but it must exist or the entity threats losing its condition as a credit union.
Credit unions typically offer the same commodities and services as bigger banks. However, several shall pick not to offer every commodity and service, because they do not do the same volume of commerce as bigger banks. Banks can afford to have loss presidents, commodities that obtain customers in the door but do not bring in much cash themselves. Credit unions are more possible to offer merely the commodities and services that a great chip of the membership is possible to use.
Deposits are insured very much like bank deposits, but the pair breeds of institutions are insured via unlike organizations. The National Credit Union Share Insurance Fund (NCUSIF), funded via the credit unions and not the federal federal, handles all deposit insurance in a credit union. This insurance offers the same horizontal of defense as the more familiar Federal Deposit Insurance Corporation (FDIC), which is funded via the federal government.
3.2.4. Investment Banks
Investment banks aid organizations exert finance markets. For instance, as shortly as a corporation hopes to lift cash via releasing stocks or bonds, an finance bank facilitates it through the process. Investment banks also consult on mergers and acquisitions.
They labor initially in the finance markets and do not take customer deposits. However, several great finance banks also serve as commercial banks or retail banks, which is why they are negotiated here.
3.2.5. Savings and Loan Associations and Cooperative Banks
Savings and lend clubs (S&Ls) were originally deployed in the nineteenth hundred to supply a mechanism for factory employees and others of limited commercial mechanism to buy homes. After World War II the U.S. federal facilitated build the savings and lends industry via insuring deposits on savings accounts. This promoted citizens to save their cash, regardless federally regulated low hobby rates.
Those funds were thereafter accustomed to produce lends we all know as mortgages; in specified, the thirty-year mortgage permits a homeowner to reward rear the lend with a series of low monthly payments across a lengthy period. With the boosted popularity of the cash market, fewer citizens were storing in the more traditional manner, meaning there was fewer cash for savings and lends to loan as mortgages.
l.transactions. They are for-profit corporations with investors whoever hope to realize a profit on those investments.
3.2.6. Online Banks
Online banks are banks that you initially (or exclusively) exert on the Internet. They permit the customer more option and flexibility. Online banks frequently offer superior rates than physical banks. They assert they do not have the above and expenses related with brick-and-mortar banks, which permits them to exceed the savings on to you.
These banks offer majority of the same services that retail banks offer. However, retain these points in brain as shortly as trading with online banks:
· Obtain and retain the physical consider and phone figure of the bank in the occasion there is a problem.
· Maintain extra care as shortly as sending sensitive information. You are now handling more than your possess physical funds; you are doing funds for the organization.
3.3. Bank Company Act:
3.3.1. Short title.- (1) This Act may be paged the Banking Companies Act, 1991.
(2) It shall be deemed to have come into coerce on 14th February 1991.
3.3.2. Application of other Acts.- The provisions of this Act shall be in attachment to, and not, save as hereinafter specifically gave, in derogation of, the Companies Act, 1913 (VII of 1913) , and any other Act for the time being in force.
3.3.3. Limited entry of this Act to co-operative banks and other commercial institutions. Nothing in this Act shall appeal to a co-operative bank or any other commercial institution booked beneath the Co-operative Societies Ordinance, 1985 (Iof 1985) or any other Act temporarily in coerces relating to co-operative banks:
Provided that the Bangladesh Bank may carry out inspections of and matter instructions to co-operative banks as formal for banking corporations beneath chapter 44 and 45 of this Act.
3.3.4. Power to hang mission of this Act.- (A) The Government whether, on a representation prepared via the Bangladesh Bank in this behalf it is pleased that it is expedient so to do, may via notification in the official Gazette hang for at majority 60 days the mission of all or any of the provisions of this Act concerning any specified banking company.
(B) The Government may, via notification in the official Gazette, continue from time to time, the term of any suspension beneath sub-section (1) for such term or terms, not outperforming 60 days at once, as it thinks fit, so however that the total term does not outperform one year.
(C) Notifications released beneath this chapter shall be surrendered to the national parliament as follows:
i) whether it is in session, within ten days of the matter of the notification, and
ii) whether it is not in session, within ten days of the conception of the session chasing the matter of the notification.
3.3.5. Definitions- In this Act, unless there is whatever repugnant in the subject or context,-
a) “approved securities” mechanism securities in which a trustee may invest cash beneath clause (a), clause (b), clause (bb), clause (c) or clause (d) of Section twenty of the Trust Act, 1881 (II of 1882) and for the purpose of chapter 13 (3) includes such securities as the Government may, via notification in the official Gazette, proclaim to be ratified securities for the purpose of this section.
b) “company” mechanism any corporation which may be injury upward beneath the Companies Act;
c) “Companies Act” mechanism Companies Act; 1913 (VII of 1913);
d) “demand liabilities” mechanism debts which must be welcomed on demand;
e) “secured lend or advance” mechanism a lend or improve prepared on the safety of resources the market quality of which is not at any time fewer than the quantity of such lend or improve, and “unsecured lend or advance” mechanism a lend or improve not so roped, or that fraction of it which is not so secured;
f) “scheduled bank” has the same meaning as in the Bangladesh Bank Order ( P.O. NO. 127 of 1972) Article two (j);
g) “Debtor” means-
1) Anybody, corporation or organization acknowledging deposits of cash on the basis of shared win and loss, or
2) Anybody, corporation or organization taking benefit of commercial opportunities on the basis of shared win and loss, buy or rent on rent, or in any other way;
h) “New bank” mechanism any bank denominated in the Bangladesh Banks (Nationalization) Order, 1972 (P.O. No. 26 of 1972);
i) “creditor” means-
1) anybody, corporation or organization acknowledging deposits of cash on the basis of shared win and loss, or
2) any corporation or commercial organization granting commercial opportunities on the basis of shared win and loss, buy or rent on rent, or in any other way;
j) “private company” has the same meaning as in the Companies Act;
k) “Bangladesh Bank” mechanism Bangladesh Bank deployed beneath the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972);
l) “rule” mechanism a govern prepared beneath this Act;
m) “special bank” mechanism any bank deployed or shaped via or beneath any Act in coerce temporarily and includes such banks as the Government may, via notification in the official Gazette, proclaim special banks for the purpose of this Act;
n) “managing director” means-
1) Concerning a fresh bank, a doing director as defined in the Bangladesh Bank (Nationalization) Order,1972 (P.O. No. of 1972);
2) concerning a special bank, a doing director as defined in the Act or the files having the coerce of an Act, beneath which the said bank has been deployed or formed;
3) concerning any other banking corporation, a director whoever, via virtue of an accordance with the banking corporation or of a resolution exceeded via the banking corporation in overall session or via its Board of Directors or via virtue of its memorandum or documents of club, is entrusted with the administration of the banking corporation, and includes a director occupying the location of a doing director, via whatever dub called;
o) “banking company” mechanism any corporation transacting the commerce of banking in Bangladesh, and includes all fresh banks and special banks;
Explanation- Any corporation which is primarily busied in the manufacture of products or supports on any import and which acknowledges deposits of cash from the public merely for the purpose of financing its commerce as such factory or dealer shall not be deemed to transact the commerce of banking within the meaning of this clause.
p) “banking” mechanism the acknowledging, for the purpose of lending or finance, of deposits of cash from the public, repayable on request or otherwise, and retreat able via cheque, draft, command or otherwise;
q) “Temporary liability” mechanism any debt other than request liability;
r) “gold” mechanism gold in the model of coin, whether constitutional bid or not, or in the model of bullion or ingot, whether refined or not;
s) “register” shall have the same meaning as in the Companies Act.
Act to dominate documents, memorandum, etc. – Save as otherwise specifically gave in this Act,-
a) unless fresh banks and special banks, the provisions of this Act shall have impression notwithstanding whatever to the negatively contained in the memorandum or documents of a banking corporation, or in any accordance executed via it, or in any resolution exceeded via the banking corporation in overall session or via its Board of Directors, whether the same be booked, executed or exceeded, as the shell may be, ago or afterwards the commencement of this Act, and
b) any supplies contained in the memorandum, documents, accordance or resolution aforesaid shall, to the length to which it is repugnant to the provisions of this Act, be void.
3.4. Characteristics / Features of a Bank
3.4.1. Dealing in Money
Bank is a commercial institution which sells with other people’s cash i.e. cash given via depositors.
3.4.2. Individual / Firm / Company
A bank may be a person, strict or a company, a banking corporation mechanism a corporation which is in the commerce of banking.
3.4.3. Acceptance of Deposit
A bank acknowledges cash from the citizens in the model of deposits which are generally repayable on request or afterwards the expiry of a predetermined period. It gives safety to the deposits of its customers. It also acts as a custodian of funds of its customers.
3.4.4. Giving Advances
A bank lends out cash in the model of lends to those whoever need it for unlike purposes.
3.4.5. Payment and Withdrawal
A bank provides easy payment and withdrawal facility to its customers in the model of cheques and drafts; It also brings bank cash in circulation. This cash is in the model of cheques, drafts, etc.
3.4.6. Agency and Utility Services
A bank provides various banking facilities to its customers. They include overall usefulness services and agent services.
3.4.7. Profit and Service Orientation
A bank is a profit searching institution having service oriented approach.
3.4.8. Ever boosting Functions
Banking is an evolutionary concept. There are continuous developments and diversification as regards operates services and actions of a bank.
3.4.8. Connecting Link
A bank acts as a joining link between borrowers and lenders of money. Banks pick upward cash from those whoever have excess cash and give the same to those whoever are in lack of money.
3.4.9. Banking Business
A bank’s main action must be to do commerce of banking which must not be subsidiary to any other business.
3.4.10. Name Identity
A bank must invariably add the word “bank” to its dub to enable citizens to know that it is a bank and that it is trading in money.
Something tangible that records communication or facts with the aid of marks, words, or symbols. A file serves to establish one or a figure of observations, and can be relied upon as a proof thereof. Generally pronouncing, documents function as evidence of intentions, although listing operate as evidence of activities
5. Restrictions upon Deed and Document Removal:
A bank-company, from its headquarters or from any fork, despite any action, shall not be permitted to transfer its deeds or files outdoors of Bangladesh, without the written consent of Bangladesh Bank (The Bank Companies Act, 1991, sec: 12)
Explanation – in this manner –
“Documents”, via any electrical mechanism, or any other mechanism of safe ledger, day-book, money reserve, bills reserve and all other novels accustomed via Bank-companies (The Bank Companies Act, 1991, sec: 12,A)
B) “Deeds’, via any electrical mechanism or any other mechanism of safe voucher, test, bill, pay-order, approached caution cash and novels via any deed that advocates a issue, whatever referred in the reserve of bank-company approximate the supporter of a issue, either for, or against the advocating deed of a claim(The Bank Companies Act, 1991, sec:12, b).
As Bank document is important and confidential, thus, Bank Company cannot remove business record outside of Bangladesh.
Thus, beneath the Act of Bank Company1991, a Bank Company cannot withdraw its commerce record outdoors Bangladesh.
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