Tasks Performed in Training program of Bangladesh Bank
A central bank or monetary authority is a banking institution granted the exclusive privilege to lend a government its currency. A central bank is distinguished from a normal commercial bank because it has the monopoly on creating the currency of a nation, which is loaned to the government in the form of legal tender. It is a bank that can lend money to other banks in times of need. Its primary function is to provide the nation’s Money Supply, but more active duties include controlling subsidized-Loan Interest Rates and acting as a lender of last resort to the Banking Sector during times of financial crisis. It may also have supervisory powers, to ensure that banks and other financial institutions do not behave recklessly or fraudulently.
History of Bangladesh Bank
Bangladesh Bank is the central bank and monetary authority of Bangladesh. It came into existence under the Bangladesh Bank Order, 1972 (Presidential order No.127 of 1972) which took effect on 16th December 1971 .Through this order ,the entire operation of the former state Bank of Pakistan in the eastern wing was transferred to Bangladesh Bank. The powers and functions of Bangladesh Bank are governed by various laws and acts including the Banker’s Books Evidence Act 1891, Insolvency Act 1920, Banking Companies Ordinance 1962, Bangladesh Bank order 1972, Foreign Exchange Act 1947, Money Lone Court Act 1990, Banking Companies Act 1991, Financial Institutions Act 1993 and Rules 1994, Companies Act 1994 and Bankruptcy Act 1997, Anti-Money Laundering Act 2002 etc. After the separation of Pakistan from India in 1947, the State Bank of Pakistan was established in 1st July 1948. The office of Deputy Governor of State Bank of Pakistan was in Dhaka. After the liberation war, and the eventual independence of Bangladesh, the Government of Bangladesh reorganized the Dhaka branch of the State Bank of Pakistan as the central bank of the country, and named it Bangladesh Bank. This reorganization was done pursuant to Bangladesh Bank Order, 1972, and the Bangladesh Bank came into existence with retrospective effect from 16 December 1971.
Bangladesh Bank sets its vision statement as follows –
“To develop continually as a forward-looking central bank with competent and committed professionals of high ethical standards, conducting monetary management and financial sector supervision to maintain price stability and financial system robustness, supporting rapid broad based inclusive economic growth, employment generation and poverty eradication in Bangladesh.” (Bangladesh Bank , 2015)
Bangladesh Bank is carrying out its following main functions as the country’s central bank:
- Formulating monetary and credit policies
- Managing currency issue and regulating payment system
- Managing foreign exchange reserves and regulating the foreign exchange market
- Regulating and supervising banks and financial institutions, and advising the government on interactions and impacts of fiscal, monetary and other economic policies.
Bangladesh Bank is discharging these functions in a forward looking, proactive, responsive and consultative manner. In aspiration for ever higher standards of performance it is aware of its limitations in independence, logistics, professional know-how and appropriateness of skill sets in staffing; Bangladesh Bank is also persistent in effort to overcome these limitations. It shall preserve and further strengthen the already earned confidence and trust of the nation, to continue being seen as a respected institution to be emulated. Towards achieving these, it’s having performance commitments to its diverse broad stakeholder groups like for the nations, for the government, for depositors in banks and financial institutions, investors in financial assets, for banks and financial institutions in Bangladesh, for banks abroad, for the business community, including farm and non-farm SMEs, for Bangladeshis abroad and for employees.
Bangladesh Bank is both the Government’s banker and the banker’s bank. Bangladesh Bank is known as the “Lender of the Last Resort”. If any commercial bank or specialize bank and all other financial institutions are face the problem of liquidity Bangladesh Bank help them financially. Bangladesh Bank is empowered to act as the watchdog of the country’s banking system, and all scheduled banks are accountable to Bangladesh Bank, which has extensive powers to ensure soundness of the banking system. No bank can commence banking business in Bangladesh and no existing bank can open a new branch in or outside the country or shift any branch from one place to another without obtaining a license/permission from the Bangladesh Bank. Bangladesh Bank, like most of the central banks of different countries, exercises monopoly over the issue of currency and the banknotes. Except for the 1 and 2 taka notes, it issues all other denominations of Bangladeshi Taka. The notes of 1 and 2 taka are issued by the government these are known as government notes and all other notes except 1 and 2 taka are issued by the Bangladesh Bank these are called as banknotes. The government deposits all its cash balances with the Bangladesh Bank free of interest.
Other major functional areas include:
- Formulation and implementation of monetary and credit policies.
- Regulation and supervision of banks and non-bank financial institutions, promotion and development of domestic financial markets.
- Management of the country’s international reserves.
- Issuance of currency notes.
- Regulation and supervision of the payment system.
- Acting as banker to the government.
- Money Laundering Prevention.
- Collection and furnishing of credit information.
- Implementation of the Foreign exchange regulation Act.
- Managing a Deposit Insurance Scheme.
Bangladesh Bank Training Academy (BBTA) provides around 80 different training courses, where around 6000 trainee participate in a calendar year. Among all these training courses, Foundation Training for Assistant Directors is the longest and hence most expensive training program from BBTA site. It is not only a training but also a development program for creating efficient central bankers. Its primary objective is to get every employee in a common platform so that everyone has minimum knowledge of banking industry. It is a 6 months long training program. 60 persons can participate at a time in a batch. It is held twice a year. (Bangladesh Bank Training Academy , 2015)
Foundation training are conducted mainly by Bangladesh Bank Training Academy and Bangladesh Institute of Bank Management (BIBM). Assistant Directors from various departments/ branch Offices pursue nomination from Training and Development Wing for this training. Then TD Wings makes an eligibility list consisting selected Assistant Directors for the training. Finally they are sent to training program on full pay leave for the period of 6 months.
Every training programs and activities are approved by Honorable Governor Sir. Deputy Directors and Joint Directors of BBTA house are considered as Course Coordinators and Deputy General Manager is considered as Course Director. BBTA has 31 in house full time faculty whose are prioritized according to seniority. BBTA does not charge any fees from any of the participant of the training program. Sometimes BBTA hires lecturers from outside of central bank like from any public or private universities, renowned economist, former employees or commercial bank employees. In this cases, BBTA arranges honorarium for them.
In foundation training, Assistant Directors get a chance to understand the economy of our country in a 360 degree approach. Here, not only do they visit the rural areas to get introduced with farmers of the village but also get a chance to see the functioning of Central Bank of India by visiting there for two weeks. They also visit Takshal which is another institution under Bangladesh Bank. They also have four industry visits as part of the foundation training program curriculum. Employee gets hostel facility, library facility, industry visit, foreign programs etc. free of cost.
Human resources department has become an integral part for every organization nowadays. It works as a bridge between the management and the employees. It also helps to build human resources as capital in an organization. For this purpose, Bangladesh Bank has divided the total HRD in two departments. Each of the departments consists of several wings. These are:
1) Human Resources Department-1: consists of 5 wings and 2 units
2) Human Resources Department-2: consists of 3 wings
During my internship, I had stints in all the wings and units where tasks related to human resources are done. The names of the wings and units I have visited throughout my internship are given below –
- Recruitment & Outsourcing Wing
- Planning, Promotion & Transfer Wing (PPT)
- Branch Office Services Unit (BOSU)
- ERP Implementation Unit
- Organization & Development Wing
- Recognition & Reward Wing
- Performance Management Wing
- Benefits & Administration Wing
- Performance & Discipline Wing
- Training & Development Wing
Tasks Performed in Different Wings and Units
Bangladesh Bank has recently initiated the automation process of their operation. For this purpose, they have introduced “Intranet Portal” where employees can get all the orders, administrative circulars, banking news, events and other relevant things right at their fingertips.
It also contains employees’ data and information. When I was in Planning, Promotion & Transfer Wing, I had to post many things in Intranet Portal like administrative orders, promotion orders, transfer orders, eligibility list of scholarship etc. to make this program effective and efficient so that employees can stay tuned all the time from any branches over Bangladesh.
Outsourcing wing made an agreement with the company who supplies the man power to Bangladesh Bank that is every outsourced employee of Bangladesh Bank must be paid at least 8000 Tk per month. When I was in outsourcing wing by rotation, I had to check accounts of 2500 employees within a week to verify whether they received 8000 Tk or not. I was also in a desk for a week where I had to collect complains against the company from these outsourced employees.
Bangladesh Bank uses a software package called SAP (Systems Applications and Products in Data Processing), which is widely accepted as one of the best HR solutions system. It basically helps to update and contain employee’s data and information. In Enterprise Resource Planning unit, I had to check for necessary updates and information posted by mistaken. In case of wrong inputs, I had to collect forms from a certain desk where existing employees complain about that wrong input and then I had to make proper correction on their basis.
Branch Office Services Unit (BOSU) helps to maintain a peaceful relationship between Bangladesh Bank headquarters and branch offices. Branch offices often face problems that they cannot solve by themselves and head office interventions are required. When I was in this wing, I was sent to Sadarghat Branch Office twice to collect their files of complains and then present it to BOSU.
As recruitment wing deals with very confidential information about a candidate, my involvement in this wing was limited. When recruitment wing analyzes the competencies required for a candidate to apply, I was told to re-analyze the criteria if there is anything missed out.
I have made specific contributions to Recognition ad Reward Wing. Recognition and Reward Wing takes an initiative to recognize and reward those who are showing extra ordinary performance in an area or takes a step ahead like a whistle blower. I had to make list all of them and prepare a “Glorification Card” for them. Finally, those cards were given by Honorable Governor Sir to the selected employees.
Performance Management Wing (PM) evaluates an employee’s performance through a specific process where a specific numerical score is given to every employee by their immediate senior/supervisor. This is a yearly report of an employee. But there are also employees who got to transfer before a year ends. PM Wing has different strategy to evaluate their performance.
When I was in this wing, I had to make a list of approximately 900 employees within 3 days who got inter departmental transfer before the year ends.
Benefits and administration wing has 7 different desks and I was sent to all of those desks. It is worth mentioning that sometimes employees send or mail just an application from home about their casual leave in an urgent basis. Then I had to make adjustments on their leave account in online at “Intranet Portal”. This task is done under Leave Desk.
I passed 3 days at House Allocation Desk. There I had to undergo a troublesome task which is to find out D category employees (Caretaker) who didn’t pay their electricity bill. It is found very often that employees leave the quarter allotted for them without paying bills.
As a requirement under Training and Development Wing, I had to go at Bangladesh Bank Training Academy (BBTA) located at Mirpur for a week. There I came to know about training programs importance, BBTA’s strategies and activities, its annual training plan and so on. I got a chance to visit BBTA hostel where Bangladesh Bank employees reside when they come from outside Dhaka.
I have also attended two training sessions called “Micro Finance” and “Mobile & E-Banking in Bangladesh” where Vice-Presidents (VP) and Executive Vice-Presidents (EVP) of different commercial banks were present.
BBTA authority also arranges some refreshment for the interns working at HR department in
Fall’2015 session. They invited me with my colleagues to have a glimpse at “Coin-Note Museum” which is regulated by BBTA. There I have witnessed the cultural transformation from copper and silver coins to paper notes. This museum is not only has rare collections like coins of 16th century but also the unrevealed notes of 40 Tk and 60 Tk denomination.
Besides my everyday job, I have to submit a weekly report to my supervisor where I have to state everything I have done in immediate week. Moreover, I had to submit a report combining all the policies and regulations undertaken by HR Department of Bangladesh Bank at finishing of my internship period.
Training program should include department rotation schedule as a course content which will take place in head office. As foundation program gives overview about baking industry and all the departments of central bank, it will be really helpful for the participants if they get a chance to relate their theoretical knowledge practically in the department.
- BBTA house should arrange a post-test evaluation of the foundation training program which would take place with the participants who completed training minimum 1 year ago so that they get to know about the opinion of the previous participants. They can help BBTA house by recommending new things to include and some other existing contents to exclude.
- There should be at least a session reserved in training schedule which will focus on the next transfer posting of an employee so that participant can apply gathered knowledge to the activities of their future department.
- Course content should be updated regularly so that participants get to know about the recent affairs of the banking industry and the economy.
- Currently an increment is given to all the trainees after the completion of the foundation program. In this way, there is hardly any incentive for the trainees to do well in the training program. My suggestion is that the trainees should be given the increment only of they have obtained ac certain score in the training evaluation. The benchmark score would be set keeping in mind the differences in the trainees’ background.