Abstract:
This report discusses the application of theoretical knowledge in the work setting, particularly
at Social Islami Bank Public Limited Company, thus providing an understanding of the banking
industry. It contains many fundamental factors such as core banking, forex business, risk
management, Islamic banking, and decision making based on the empirical data. This report
provides banking institutions with the scope and benefit areas of operations that need to be
improved such as the extent of cost minimization through optimum utilization of economic
resources. There are fluctuations in Social Islami Bank Public Limited Company's forex
business between 2018 and 2020 which was followed by up surging performance in the year
2022 where it recorded the maximum growth at Tk. 242,893.8 million. The report works on
identifying and measuring the risks associated with the foreign exchange market whether
exchange rate risk, liquidity risk or counterparty credit risk and recommends appropriate
measures which include hedging, risk management measures, forex process automation and
management of currency risk. In addition, Social Islami Bank Public Limited Company did
come under the effect of COVID-19 during some time of its import business. Nevertheless, by
2022 this had been reinstated, and the volume was above the previous year level by 26.4
percent. Reporting on this matter draws attention to such problems as volatility of foreign
exchange rates, sufficiency and quality of documentation as well as disruptions of supplies.
Social Islami Bank Public Limited Company has implemented greater procurement
management and enhanced credit risk analysis as a means to address the aforementioned issues.
The report concludes with how Social Islami Bank Public Limited Company should be
regarding the recommendations such as changes in hedging strategies, further strengthening of
the risk management systems, better training of the personnel, and better automation of foreign
exchange operations in order to become more adaptable to the change in the environment in
which the bank operates.
Social Islami Bank Public Limited Company managed to further strengthen its control over
foreign liabilities, its capital structure and its trade balance but on the other hand was subjected
to a very high foreign exchange risk exposure in the year 2022 which means that there should
be stricter methods in place to curb these risks.
