Bangladesh Banking and Financial System Overview
Bangladesh's financial system is overseen by Bangladesh Bank (BB), which serves as the central bank responsible for monetary policy, banking supervision, and foreign exchange management. As of 2025, 61 commercial banks, 35 non-bank financial institutions (NBFIs), and 81 insurance companies are in operation, with the banking sector's total assets exceeding $23 billion — approximately 65% of GDP.
A local bank account is essential for Korean companies operating in Bangladesh. Foreign investment enterprises can open a foreign currency account (FC Account) and a local currency (Taka) account at commercial banks after completing BIDA (Bangladesh Investment Development Authority) registration. Woori Bank Dhaka Branch is the only Korean bank in Bangladesh, providing direct financial support to Korean companies.
Bank Types Compared: State-Owned vs Private vs Foreign
Bangladesh's banks are classified into state-owned commercial banks (SCBs), private commercial banks (PCBs), and foreign commercial banks (FCBs). Korean companies should select the bank that best matches their transaction volume and service needs.
Detailed Comparison of Major Banks
A comparison of key indicators for 15 banks most likely to be used by Korean companies. Evaluate based on trade finance (L/C), foreign exchange services, and corporate lending conditions.
| Type | Bank | Total Assets | NPL | L/C Service | Suitability for Korean Companies |
|---|---|---|---|---|---|
| Foreign | Standard Chartered | $4.5B | 2.8% | Excellent | ★★★★★ |
| Foreign | HSBC Bangladesh | $3.8B | 2.1% | Excellent | ★★★★★ |
| Foreign | Woori Bank Dhaka | $0.8B | 1.5% | Excellent | ★★★★★ |
| Private | BRAC Bank | $5.2B | 4.2% | Good | ★★★★☆ |
| Private | Dutch-Bangla Bank | $5.8B | 4.8% | Good | ★★★★☆ |
| Private | Eastern Bank (EBL) | $3.5B | 3.5% | Good | ★★★★☆ |
| Private | City Bank | $4.1B | 5.1% | Good | ★★★★☆ |
| Private | Prime Bank | $3.9B | 4.5% | Good | ★★★☆☆ |
| Private | Islami Bank BD | $8.2B | 4.0% | Good | ★★★☆☆ |
| Private | Pubali Bank | $4.0B | 5.5% | Fair | ★★★☆☆ |
| State | Sonali Bank | $9.5B | 22% | Fair | ★★☆☆☆ |
| State | Agrani Bank | $6.2B | 18% | Fair | ★★☆☆☆ |
| State | Janata Bank | $7.8B | 25% | Fair | ★★☆☆☆ |
| State | Rupali Bank | $3.1B | 15% | Fair | ★★☆☆☆ |
| Special | IDLC Finance (NBFI) | $1.5B | 3.2% | Limited | ★★★☆☆ |
Foreign Company Account Opening Process
Foreign investment companies in Bangladesh must complete BIDA registration before opening a bank account. Accounts are divided into foreign currency accounts (FC Accounts) and local currency (Taka) accounts, and most companies will require both.
Foreign Exchange Regulations and Remittances
Bangladesh operates foreign exchange controls (capital controls), meaning all foreign exchange transactions are regulated by Bangladesh Bank. Below is a summary of the key foreign exchange regulations Korean companies need to know.
| Transaction Type | Limit | Approving Authority | Processing Time | Required Documents |
|---|---|---|---|---|
| Investment remittance (inbound) | Unlimited | AD Bank | 3–5 business days | BIDA approval, investment plan |
| Import payment (L/C) | Up to $1M per transaction | AD Bank | Immediate–3 days | L/C, shipping docs, commercial invoice |
| Import payment (T/T) | Up to $50K per transaction | AD Bank | 1–3 business days | PI, contract, invoice |
| Profit dividend remittance | 100% of annual profit | BB + AD Bank | 2–4 weeks | Audit report, tax payment certificate |
| Royalties & technical fees | Up to 6% of revenue | BB prior approval | 4–8 weeks | Technology agreement, BB approval |
| Capital repatriation (exit) | Up to invested capital | BB approval | 4–12 weeks | Liquidation documents, tax clearance |
Trade Finance and Project Financing
Trade finance is critical for Korean companies engaged in import/export operations in Bangladesh. L/C (Letter of Credit) transactions are the standard, with bank L/C margins and terms varying based on the importer's creditworthiness.
Bangladesh's banking and financial system is modernizing rapidly, but risk factors such as foreign exchange controls and high non-performing loan ratios remain. Korean companies are recommended to adopt a dual-bank strategy — using Woori Bank Dhaka Branch as the primary bank while also maintaining Standard Chartered or HSBC as a secondary banking partner. For foreign exchange remittances, always verify Bangladesh Bank regulations in advance and process transactions through an AD (Authorized Dealer) bank.