The formally known ‘State Bank of Pakistan’ was renamed as ‘Bangladesh Bank’ right after Bangladesh’s independence. The Bangladesh Bank automatically became official foreign exchange reserve institute. It was too accountable for currency control, monitoring exchange and credit control. In the early 1970s, the government decided to permit foreign banks to continue their business and nationalize the local banks. In that very decade of 1970s, the primary concern of the government was to develop the country’s agricultural industry . This resulted in the Krishi Bank extending loans to more farmers. In the later decades, however, the county’s focus shifted to industrialization; resulting in various difficulties in the economic growth process. Lack of proper private activity guidelines and proper methods on loan giving were more significant of these problems. It was not until the late 1980s that these difficulties were being overcome and compensated for the agro sector. However the fin...