In today’s rapidly evolving global financial environment, banking management has become a complex, multidimensional, and deeply intellectual field. Modern banking is no longer confined to financial transactions alone; it now encompasses risk management, technology-driven services, customer relations, regulations and policies, and ethics—forming a comprehensive and integrated management framework.
Against this backdrop, Gurukul Bank Management has been developed as a modern and timely online manual. Its primary objective is to provide clear, informative, and practical knowledge to students, job seekers, professionals, entrepreneurs, and general readers interested in entering or understanding the world of banking and finance.
This manual includes:
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Fundamental concepts of banking
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Modern bank management frameworks
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Customer service and digital banking
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The role and policies of central banks
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Risk management and ethics
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Performance evaluation and human resource management
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Fintech, MFS (Mobile Financial Services), and future banking trends
With its user-friendly language, study-oriented layout, and step-by-step explanations, this online manual aims to build a solid foundation of confidence and knowledge for readers.
We hope Gurukul Bank Management will become more than just a repository of information—it will serve as an active platform for learning, reflection, and application.
Bank Management – Index
Introduction
- What is a Bank?
- Types of Banks
- Global Banking Systems
- Banking System in Bangladesh
- Management of Commercial Banks and the Rationale Behind the Growing Importance of Bank Management
- Fundamentals and Content Presentation Plan of Efficient Management
- Review Questions
Management of the Banking Environment
- Necessity of Understanding the Bank’s Operating Environment
- Elements of the Banking Business Environment
- Internal Environmental Elements
- External Environmental Elements
- Key Challenges Faced by Bankers Due to External Environmental Factors
Organisational Management
- Concept of Bank Management
- Board of Directors
- Formation of the Bank’s Board of Directors
- Qualifications and Election of Directors
- Oath Taking by Directors
- Powers of Directors
- Security and Compensation of Directors
- Personal Attributes of Directors
- Responsibilities of Bank Directors
- Duties of Bank Directors
- Liabilities of Bank Directors
- Retirement of Directors
- Relationship Between Board and Management
- Standing Committees of the Board
Fund Management and Measures of Performance
- Sources and Uses of Bank Funds
- Activities for Raising Bank Funds
- Activities for Utilising Bank Funds
- Evaluating Bank Operational Performance
- Indicators of a Successful Bank
- Classification of Banks Based on Performance
- Indicators of Bank Insolvency
Deposit Management
- Purpose of Bank Deposits
- Overall Banking System vs. Individual Bank Deposit Levels
- Types of Bank Deposits
- Types of Deposit Accounts in Asian Countries
- Common Deposit Products in Western Countries
- Deposit Processing
- Deposit Mix
- Factors Determining Deposit Levels
- Special Deposit Schemes
- Modern Electronic Banking Technologies
- Deposit Insurance
- Conclusion
- Review Questions
Capital Management
- Introduction
- Types of Capital
- Capital Instruments or Debt Securities
- Importance of Bank Capital
- Functions of Bank Capital
- Bank Capital Planning
- Capital Planning Process
- Measurement of Capital Adequacy
- Capital Adequacy Testing
- Capital Adequacy in Bangladesh
- Ensuring the Security of Bank Capital
- Conclusion
- Review Questions
Reserve Management
- Introduction
- Definition of Reserves
- Concepts Related to Reserves
- Primary Reserve
- Components of Primary Reserve
- Functions of Primary Reserve
- Types of Primary Reserve
- Key Factors Determining Effective Reserve
- Secondary Reserve
- Asset Requirements for Secondary Reserve
- Functions of Secondary Reserve
- Components of Secondary Reserve
- Determinants of Secondary Reserve
- Primary vs. Secondary Reserve
- Factors Influencing Reserve Account Changes
- Daily Statements of Liquid Asset Maintenance by the Central Bank
- Daily Cash Management of Banks
- Conclusion
- Review Questions
Liquidity Management
- Introduction
- Liquidity vs. Profitability
- What is Liquidity?
- Liquid Assets of a Bank
- Nature of Bank Liquidity
- Types of Liquidity
- Demand and Supply of Bank Liquidity
- Conventional Measures of Liquidity
- Managing Liquidity Crisis
- Optimal vs. Poor Liquidity
- Considerations in Selecting Sources to Meet Liquidity Needs
- Strategies for Liquidity Management in Banks
- Understanding the Measurement of Bank Liquidity Requirements
- Theories Related to Liquidity Management
- Daily Cash Management of Banks
- Conclusion
- Review Questions
Loan Management: Introduction and Principles
- Introduction
- What is a Loan?
- Differences Between Loan and Investment
- Characteristics of Bank Loans
- Functions of Bank Loans
- Classification of Bank Loans
- Importance of Bank Loans
- Further Classification Based on Loan Tenure
- Sources of Loan Information
- Common Business Types Receiving Bank Loans
- Examples of Acceptable and Unacceptable Loan Applications in Commercial Banks
- Pricing of Bank Loans
- Considerations in Pricing Bank Loans
- Fundamental Principles of Good Lending
- Conclusion
- Review Questions
Loan Management: Policy & Functions
Introduction
Administrative Structure of Loan Management
Loan Policy of the Bank
What is a Loan Policy?
Stages of the Loan Process
Loan Analysis
Use of Financial Ratios in Loan Analysis
Loan Documentation
Loan Monitoring Activities
Common Forms of Collateral in Banking
Conclusion
Questionnaire
Loan Management: Problematic / Distressed Loans
What are Problematic / Distressed Loans?
Ideal Loans vs. Problematic Loans
Loan Review and Identification of Problematic Loans
Key Considerations in Loan Review
Loan Classification Based on Recoverability
Indicators of Problematic Loans
Causes of Distressed Loans
Bank’s Response Measures for Problematic / Distressed Loans
Causes of Loan Default Despite Having Collateral
Conclusion
Questionnaire
Case Study
What is a Case Study?
Types of Case Studies
Stages of a Case Study
Specific Cases
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Mrs Sylvia Case
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ABC Bank Case
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Shahed Case
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Osman & Co. Case
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Bank of Singapore Case
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Bank of UK Case
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Bank of Hong Kong Case
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Badal Brothers Case
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Diana Textiles Case
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Dhamrai Dairy Farm Case
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Sonar Bangla Poultry Case
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Ashraf & Shahed Case
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Alpha Ltd. Case
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Western Case
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Mukital Bank Case
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Bill Purchase Case
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XYZ Bank Case
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Ali Brothers Case
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Haldar Rahim Textile Case
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Mr Hasan Case
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RIMS Case
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Kong Yan Case
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SGS Case
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Teen Er Case
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SIMEX Bank Case
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Bangla Bank Case
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Nippon Bank Case
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Merchant Bank Case
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SIMI Bank Case
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Sagu Seed Case
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Ceramic Tiles Case
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Purbasha Bank Case
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Rice Import Case
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Beta Bank Case
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Neyaz Sharif Case
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M. M. Kabir Case
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Kalpana Bank Case
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Sunny Tube Co. Case
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Singaporean Potato Buyer Case
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King Iron Ltd. Case
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Mr Zunaid Sinha Case
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Zia Drum Factory Case
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Small Shoe Manufacturer Case
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Old Ship Case
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Jasim Spinning Mill Case
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Cosco Vegetable Oil Case
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Rahim Steel Case
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Towel Factory Case
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Shafiullah Case
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M/S. Sufia Jahan Traders Case
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Hamid Textile Mills Ltd. Case
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M/S. Himalaya Cement Ltd. Case
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M/S. Super Stave Spinning Mills Ltd. Case
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M/S. Sabina Chemical Ltd. Case
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M/S. Prime Fishing Net Manufacturer Case
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M/S. Surma Honey Processing Ltd. Case
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Hatem Shikder Case
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M/S. Sun Spinning Mills Ltd. Case
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M/S. Mmiracle Toys Ltd. Case
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M/S. Rana Paper Mills Ltd. Case
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M/S. Doctors Sweaters Ltd. Case
Questionnaire
Investment Management
What is Meant by Bank Investment?
Rationale for Using Non-Loan Bank Funds
Administrative Structure of Bank Investment Activities
Characteristics of Bank Investments
Objectives of Bank Investment
Functions of Bank Investment
Principles of Prudent Investment
Bank Investment Strategy
Key Considerations in Security Selection
Investment Strategies
Grading of Investment-Grade Securities
Approved Investment-Grade Securities
Advantages and Disadvantages of Approved Investment Securities
Conclusion
Questionnaire
Regulatory Arrangement of Banks
Relevance of Bank Regulation
What is Meant by Bank Regulation?
Objectives of Bank Regulation
Strategies / Tools of Bank Regulation
Regulatory Authorities of Banks
Bank Regulatory System in Bangladesh
Establishment and Expansion of Private Banks
Management and Administration of Commercial Banks
Bank Deposits and Funds
Bank Loans and Advances
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a. Credit Information Bureau (CIB)
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b. Loan Classification and Provisioning Policy
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c. Loan and Advance Policy
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d. Approval of Large Loans
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Bank Accounts, Disclosure, and Audit
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Bank Irregularities, Compensation and Liquidation
Electronic Banking
What is Electronic Banking?
Objectives of Electronic Banking
History and Evolution of Electronic Banking
Structure of Electronic Banking
Core Components of Electronic Banking
Types of Electronic Banking
Retail Electronic Banking Services
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Automated Teller Machines (ATM)
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Debit Card
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Credit Card
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Point of Sale (POS) Services
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Cheque Truncation
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Retail Automated Clearing House Services
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Home and Office Banking
Wholesale Electronic Banking -
Cash Management
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Wire Transfers
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Institutional Automated Clearing House
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Internet Banking
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Current Landscape of Electronic Banking in Bangladesh
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Challenges of Electronic Banking
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Recommendations for Implementing Electronic Banking in Bangladesh
Appendix-1:
Abbreviations Used in Banking Business
Appendix-2:
Selected Terms Used in Banking Business
Appendix-3:
Bangladesh Bank Order, 1972
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Preliminary & Establishment, Incorporation, Capital and Management
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Business and Functions of the Bank – Part 1
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Business and Functions of the Bank – Part 2
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Collection and Furnishing of Credit Information
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General Provisions of the Bangladesh Bank Order, 1972
(As amended up to)
Appendix-4:
Bank Companies Act, 1991
(As amended up to 1995)
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Preliminary of the Bank Companies Act, 1991
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Functions of Bank Companies – Part 1
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Functions of Bank Companies – Part 2
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Functions of Bank Companies – Part 3
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Functions of Bank Companies – Part 4
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Unlawful Banking Business by Companies, etc.
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Acquisition of Bank Companies
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Temporary Closure and Winding-up of Bank Companies
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Expedited Resolution of Winding-up Procedures
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Miscellaneous Provisions of the Bank Companies Act, 1991
Appendix-5:
List of Books Used
Appendix-6:
List of Journals Used
