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2749 WordsAug 19, 201411 Pages
To conduct banking in Bangladesh, all banks have to have licenses from the Bangladesh Bank under the Bank Companies Act 1991. To be able to get a license, all intending banks have to be registered with the Registrar of Joint Stock Companies under the companies act 1994, and collect Certificate of Incorporation. Moreover, to collect capital through public offerings of shares, intending banks have to obtain permission from the country's securities and exchange commission. Banking institutions in Bangladesh can be classified under different groups. Most banks fall under the category of branch banking ie, the banks operate through branches at home and abroad under the control of their head offices. Foreign branches of Bangladeshi banks have to abide by home country regulations. Under the ownership-based classification, banks in Bangladesh are classified as government/nationalized, private, foreign, and joint ownership banks. The country had 6 nationalized commercial banks (NCB) until 1983, when one of them, the Rupali Bank was denationalized. Another government bank, the Public Bank, was denationalized in 1986. 4.1 Laws that Directly Regulates the Banking Systems of Bangladesh are: 1. Bangladesh Bank Order 1972 2. Bank Company Act, 1991 3. Bangladesh Bank (Nationalization) Order 1972 4. Companies Act 1913 and 1994 5. Deposit Insurance Order 1984 6. Bankruptcy Act 1997 7. Insolvency Act 1920 8. Financial Court Act 1990 9. Foreign Exchange (Regulation) Act 1986 10. Financial Institutions Act 1993 11. Financial Institutions Rules 1994 12. Co-operative Societies Ordinance 1984 4.2 Laws that Indirectly Influence the Banking Systems are: 1. Code of Civil Procedure 1898 2. Code of Criminal Procedure 1898 3. Evidence Act 1872 4. General Clauses Act 1897 5. Limitations Act 1908 6. Negotiable Instruments Act 1881 7. Penal

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