Bangladesh, a land endowed with rich natural resources and a deep-rooted cultural heritage has been steadily improving her socio-economic conditions since its independence in 1971. To bring her economy in line with other developing nations, it is continuously improving and implementing various monetary and fiscal policies. Various important steps towards financial reforms were initiated by the Government of Bangladesh to bring its economy in line with global expansion of the free market and international trading in the last two decades. To streamline the financial sector, the government introduced the Financial Institutions Act 1993. As a result, a healthy and stable atmosphere has been created, allowing private sector finance companies to operate smoothly and profitably, in the emerging economy of Bangladesh.