Okay, here are short notes on the requested topics, with brief details relevant to Bangladesh

where applicable:
Monetary Policy Statement: A public document issued periodically (usually semi-annually) by
Bangladesh Bank outlining its monetary policy objectives, strategies, and outlook for the
economy (inflation, growth, etc.). It guides the central bank's actions regarding interest rates,
money supply, and credit.
Trust Cum Settlement Account: An account held by a financial institution (often a bank) with
the central bank (Bangladesh Bank) to facilitate the clearing and settlement of transactions,
especially in payment systems like RTGS and BEFTN. It acts as a central pool for funds
awaiting final settlement.
Sustainable Finance/Banking: Financial activities that take into account environmental, social,
and governance (ESG) factors in investment and lending decisions. It aims to support
sustainable development and mitigate climate change risks. Bangladesh Bank has been
encouraging green financing initiatives.
Manage Float Exchange Rate System: An exchange rate regime where the central bank
(Bangladesh Bank) allows the value of the national currency (Taka) to fluctuate based on market
forces but intervenes occasionally to moderate excessive volatility or achieve specific policy
objectives. Bangladesh currently operates under a managed float.
OTC Market (Over-The-Counter Market): A decentralized market where financial instruments
(like derivatives, bonds, and some currencies) are traded directly between two parties without
going through a formal exchange. Transactions are often customized.
MRA (Micro Credit Regulatory Authority): The regulatory body in Bangladesh responsible for
supervising and regulating microfinance institutions (MFIs). It sets rules for their operations,
governance, and client protection.
Mobile Financial Service (MFS): Services that allow users to conduct financial transactions
(payments, transfers, cash-in/cash-out) using their mobile phones. Examples in Bangladesh
include bKash, Nagad, and Rocket.
E-money: Electronic money stored electronically on devices like cards or mobile phones, used
for making payments. Mobile wallets in Bangladesh are a prominent form of e-money.
Future Market and Forward Market: Agreements to buy or sell an asset at a specified future
date and price. Futures are typically traded on organized exchanges and are standardized,
while forwards are OTC and customized.
Sukuk: Islamic bonds that comply with Shariah principles, typically representing ownership in
an asset or a project rather than a debt with interest. Bangladesh has issued Sovereign Sukuk.
Takaful: Islamic insurance based on the principles of mutual assistance and shared risk,
operating without interest (riba) and excessive uncertainty (gharar).
CRR (Cash Reserve Ratio): The percentage of a commercial bank's deposits that it is legally
required to keep as reserves with the central bank (Bangladesh Bank). It's a tool for monetary
policy.
SLR (Statutory Liquidity Ratio): The percentage of a commercial bank's net demand and time
liabilities that it must maintain in liquid assets (like cash, government securities, and balances
with Bangladesh Bank). It ensures banks have enough liquid assets to meet short-term
obligations.
Repo (Repurchase Agreement): A short-term agreement where a bank sells securities to
Bangladesh Bank (or another party) with a commitment to buy them back at a later date at a
slightly higher price. It's a way for banks to borrow money and for the central bank to inject
liquidity.
Reverse Repo: The opposite of a repo, where Bangladesh Bank borrows money from
commercial banks by selling them securities and agreeing to buy them back later. It's a way for
the central bank to absorb liquidity.
HTM (Held-To-Maturity) Securities: Debt securities that a financial institution intends and has
the ability to hold until their maturity date. They are usually recorded at amortized cost.
HFT (Held-For-Trading) Securities: Securities that a financial institution buys with the intention
of selling them in the near term to profit from short-term price movements. They are recorded at
fair value.
Regulatory Forbearance: A situation where a regulatory authority (like Bangladesh Bank)
temporarily refrains from taking strict supervisory actions against a financial institution that is
facing difficulties but is deemed viable in the long run.
Moral Suasion: Informal persuasion or guidance by the central bank (Bangladesh Bank) to
commercial banks to influence their lending behavior or other activities, without formal
regulations.
Financial Interrelation Ratio (FIR): (Total Financial Assets / GDP) - Measures the size of
financial assets relative to the real economy, indicating the degree of financialization.
Financial Intermediation Ratio (FIMR): (Total Assets of Financial Intermediaries / Total
Financial Assets) - Indicates the role of financial intermediaries in channeling funds within the
financial system.
Free Float Exchange Rate System: An exchange rate regime where the value of a currency is
determined solely by market forces of supply and demand without any intervention by the
central bank.
Managed Float Exchange Rate System: (Already explained above)
Adverse Selection: A situation in financial markets where one party in a transaction has more
information than the other, leading to a market imbalance. For example, borrowers with a higher
risk of default may be more eager to take out loans.
Asymmetric Information: A situation where one party in an economic transaction has more or
better information than the other party. This can lead to adverse selection and moral hazard.
Deposit Insurance: A system that guarantees the safety of deposits up to a certain limit in case
a bank fails. Bangladesh has a deposit insurance scheme managed by Bangladesh Bank,
though the coverage limit is relatively low.
Price Stability: A macroeconomic goal where the general level of prices in an economy
remains relatively constant over time, avoiding high inflation or deflation. It's a primary objective
of Bangladesh Bank's monetary policy.
Quard Hassan: Likely refers to Qard Hasan, which is an interest-free loan in Islamic finance,
often provided for social welfare or small business purposes. Borrowers are only obligated to
repay the principal amount.
Rahn: (Explained earlier under Islamic Banking Principles) Pledge or mortgage in Islamic
finance where an asset is provided as collateral for a loan.
RTGS (Real-Time Gross Settlement): A payment system where the transfer of money or
securities takes place on a real-time and gross basis (transaction by transaction). Bangladesh
has an RTGS system for large-value payments.
BEFTN (Bangladesh Electronic Funds Transfer Network): An electronic funds transfer
system in Bangladesh used for bulk and repetitive payments like salary disbursements and bill
payments.
Economic Growth: An increase in the value of goods and services produced in an economy
over a period of time, usually measured by the percentage change in real GDP.
Economic Development: A broader concept than economic growth, encompassing
improvements in living standards, education, healthcare, and overall well-being, along with
economic growth.
IRR (Internal Rate of Return): The discount rate at which the net present value (NPV) of all the
cash flows (both positive and negative) from a particular project or investment equals zero. It's
used to evaluate the profitability of investments.
Sovereign Sukuk: Shariah-compliant bonds issued by a government. Bangladesh has issued
these to raise funds while adhering to Islamic finance principles.
Bond Indenture: A legal document that specifies the terms and conditions of a bond issue,
including the maturity date, interest rate (if applicable and Shariah-compliant for Sukuk),
covenants, and rights of the bondholders.
Murabaha: (Explained earlier under Islamic Banking Principles) Cost-plus financing, a common
mode of Islamic financing.
Taka Pay: A national payment switch initiative in Bangladesh aimed at interoperability between
different payment systems, including cards and mobile financial services, facilitating seamless
transactions.
Velocity of Money: The rate at which money circulates in the economy; the number of times
one unit of currency (Taka) is spent to purchase goods and services during a given period.
Money Multiplier: The ratio of the change in the money supply to a change in the monetary
base (high-powered money). It indicates how much the money supply expands for every unit
increase in the monetary base.
Crawling Peg: An exchange rate system where the central bank makes small, periodic
adjustments to the exchange rate to manage its depreciation or appreciation in a gradual and
predictable manner.
Bangla QR Code: A standardized QR code for payments in Bangladesh, aiming to promote
interoperability and ease of use for digital transactions across different platforms.