Export Import Bank of Bangladesh Ltd
Executive Summary Commercial banks are one of the key contributors in the economy of developing countries. They act as financial intermediaries by performing the function of mobilizing the funds from one party and lending the same to another while making a reasonable amount of profit after meeting the cost of fund. People and the government itself are very much dependent on the services provided by the 55 banks in the financial market. Banking system of Bangladesh has gone through three phases of development. They are nationalization, privatization and lastly reform the financial sector. Export Import of Bangladesh Limited has started its journey as a private commercial bank on August 3, 1999. The whole working process of Principal Branch, EXIM BANK Ltd is divided into 3 sections. They are 1) General Banking, 2) Credit and 3) Foreign Exchange. To know how well a bank is performing actually, a case study on Nawabpur Branch of EXIM BANK Ltd. is being taken. This report has been presented based on observation from each section, which is consisted of various departments. Foremost, I have tried to make acquainted with the bank and branch in this report. The banking practice of conventional banking and Islamic banking is highly different from the concept. The Islamic concept thinks, interest is harmful for the economy and banking should be done on the Shariah basis. From the very beginning of this bank it was not operated under this concept of Islamic Shariah system, which was converted into Islamic banking later. The Islamic banking collects deposit from different viewpoint, so the whole banking practice with the clients differ highly from conventional banking. The Islamic bank gives the depositors the amount of profit they earn from their operation, not the interest. So the credit contracts are ultimately differ from the conventional banking. The Islamic banking used the credit in different name that is “investment�. Here the bank goes with the client a type of business relationship where the bank made arrangement to conduct business for the client, the bank is the owner of the money and property where the client just provide the labor and share the profit with the bank. General banking is the starting point of all the banking operations. This department provides day to day services the customers. It opens new accounts, remit funds, issue bank drafts and pay orders etc. provide customer through quick and sincere service is the goal of the general banking department. Foreign Exchange department plays significant roles through providing different services for the customers. Letter of Credit is the key part of foreign exchange business. With the globalization of economies, international trade has become quite competitive. Timely payment for exports and quicker delivery of goods is, therefore, a pre-requisite for successful international trade operations. To ensure this purpose EXIM Bank Limited transmits L/C through SWIFT (Society for Worldwide Inter bank Financial Telecommunication) to the advising bank. EXIM Bank Ltd is providing different sorts L/C services like L/C opening, lodgment, BLC (Bill under letter of credit), back to back L/C etc. Foreign Exchange department also provide