This was compounded by the fact that loans were handed out to the public sector without commercial considerations; banks had poor capital lease, provided poor customer service and lacked all market-based monetary instruments.

[6][7] While the government made a point of intervening everywhere, it did not set up a proper regulatory system to diagnose such problems and correct them.

[7] Policies made use of the McKinnon-Shaw hypothesis, which stated that removing distortions augments efficiency in the credit market and increases competition.

The FSRP forced banks to have a minimum capital adequacy, to systematically classify loans and to implement modern computerised systems, including those that handle accounting.

It forced the central bank to free up interest rates, revise financial laws and increase supervision in the credit market.

Afterwards, the Government of Bangladesh formed a Bank Reform Committee (BRC), whose recommendations were largely unaddressed by the then-government.

[citation needed] Currently, it has ten offices located in Motijheel, Sadarghat, Chittagong, Khulna, Bogra, Rajshahi, Sylhet, Barisal, Rangpur and Mymensingh in Bangladesh; total manpower stands at 5807 (officials 3981, subordinate staff 1826) as of 31 March 2015.

[8] The Bank has 10 physical branches: Mymensingh, Motijheel, Sadarghat, Barisal, Khulna, Sylhet, Bogra, Rajshahi, Rangpur and Chittagong; each is headed by an executive director.

Headquarters are located in the Bangladesh Bank Building in Motijheel, which has two general managers.

[10] The general supervision and direction of the Bank's affairs and business are entrusted to a Board of Directors.