The financial system of Bangladesh is comprised of three broad fragmented sectors:

1. Formal Sector
2. Semi-Formal Sector
3. Informal Sector

The sectors have been categorized in accordance with their degree of regulation.

The formal sector includes all regulated institutions like Banks, Non-Bank Financial

Institutions (FIs), Insurance Companies, Capital Market Intermediaries like Brokerage

Houses, Merchant Banks etc.; Micro Finance Institutions (MFIs).

The semi formal sector includes those institutions which are regulated otherwise but do not

fall under the jurisdiction of Central Bank, Insurance Authority, Securities and Exchange

Commission or any other enacted financial regulator. This sector is mainly represented by

Specialized Financial Institutions like House Building Finance Corporation (HBFC), Palli

Karma Sahayak Foundation (PKSF), Samabay Bank, Grameen Bank etc., Non-Governmental

Organizations (NGOs and discrete government programs.

The informal sector includes private intermediaries which are completely unregulated.

The following figure shows the financial system of Bangladesh.