Internship Report on Foreign Exchange Activities of First Security Islami Bank PLC

Abstract

First Security Islami Bank PLC, founded on August 29, 1999, is a prominent Islamic bank in Bangladesh that adheres to Sharia-compliant banking principles. Mohammed Saiful Alam, chairman of the S. Alam Group of Industries, played a key role in the bank's leadership for many years. However, in 2022, the bank faced significant financial difficulties due to a cash crunch resulting from large unsecured loans. This situation raised concerns about the bank's stability and governance. In a significant move, the Bangladesh Bank dissolved the board of First Security Islami Bank on September 1, 2024, citing the need for reform. Independent directors were appointed to oversee the bank, marking a crucial step toward restoring confidence and ensuring better financial practices. This intervention reflects broader efforts to enhance the integrity and stability of the banking sector in Bangladesh. This report aims to provide an insight of First Security Islami Bank PLC 's foreign exchange operations for the 2019–2023 timeframe. L/C, import, and export procedures are the major components of foreign exchange activities. FSIBL is currently focusing on various export incentives to draw in current and new clients. 584 foreign correspondents are employed as of December 31, 2023. In order to support the bank's expanding overseas trade operations, efforts are still being made to further develop the correspondent relationship. In order to guarantee better remittance services for its clients, FSIBL should also expand its network of banks and foreign exchange firms worldwide. Additionally, each branch should offer internet banking to promote remittances.