Loan & Foreign Remittance of Sonali Bank Ltd

Anik, Md. Hossain Masud

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Loan & Foreign Remittance of Sonali Bank Ltd

Anik, Md. Hossain Masud

URI: http://dspace.daffodilvarsity.edu.bd:8080/handle/123456789/4938

Date: 2020-11-02

Abstract:

Sonali Bank Ltd is the largest state owned commercial bank in Bangladesh and it has been contributing to our economy since its birth. I have started my work with them earning of remittance later I explained the importance of it. During last 10 years the bank has been receiving huge amount of remittance. In this report I have discussed about the operations of remittance unit of Sonali Bank Ltd along with the position of our country among the developing countries interns of remittance. I have represented a graph showing remittance flows of last 10 years. Remittance receiving procedure of Sonali Bank Ltd has also been described. There are two main category of remittance receiving procedure. One is inward and another is out ward remittance. And the charges of the bank for inward and outward remittance along with the restrictions of Bangladesh Bank have been discussed. I have shown the types of outward remittance in details. I have also showed a comparison between our country and some developing countries in terms of remittance flows. I have also focused the performance of the bank in terms of remittance flows in comparison to the percentage of total remittance flows in our country. I have also analyzed along with findings the performance of the bank in terms of remittance flows. Country wise wage earners remittance inflows of 2018-2019 have also been represented through a graph. I have also described the remittance process having two major channel-formal and informal. Then I have discussed why migrant choose informal channel to send remittance and the disadvantages of informal channel. I have also mentioned the list of exchange houses through which the bank receives remittance and send remittance. Determinants of remittance have been explained with proper logic in details. Impact of remittance on our economy, financial sectors and on micro-economic level, household level and community level have been described with logical explanation. Socio economic impact of remittance and role of some institutions (such as MoF, BB, FEPD etc) in perspective of remittance have been discussed broadly. There are two major types of remittance management system. They are EFT (Electronic Fund Transfer) & SWIFT (Society for Worldwide Interbank Fund Telecommunication).Features and advantages of RMS have also been discussed I have also find out the problems related to the RMS. And provided recommendation of the report.

Description:

To help non-resident Bangladeshis remit their income by legal means, the Wage Scheme was launched in 1974. This program soon became very popular with Bangladeshi migrant workers working abroad. Bangladeshi migrants returned approximately $ 11.8 million to their country of origin in the 1974-75 fiscal year. The amount of remittances increased by more than $ 350 million in the 1980-81 fiscal year and by $ 750 million in the 1990-91 fiscal year. Since then, Bangladesh has received more remittances from year to year. As the number of migrant workers from Bangladesh has increased rapidly over the years, there has been a significant increase in the amount of annual remittances to the country. In June 2019, Bangladesh receives almost Remittance amount of $ 15 billion. Remittances are increasing day by day as a key force for economic growth and poverty reduction in Bangladesh. In fact, it is the second largest position in Bangladesh's foreign exchange earnings sector (Bangladesh Bank, 2017). Bangladesh is one of the recipients of remittances from other countries of the world. Many people work abroad as skilled, semi-skilled workers or unskilled workers. Middle Eastern countries such as Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Oman, Iran, etc. Important countries where Bangladeshi workers work hard to make money. Transfer workers play an important role in the absence of trade deficit in Bangladesh (import payment is higher than export revenue). Remittances have contributed to easing social and economic indicators such as nutrition, living conditions and housing, education, health, poverty reduction, social security and investment activities of host households. Remittances have played a big role in Bangladesh’s economic growth and people’s livelihoods. Income from remittances is more valuable to any developing country like Bangladesh. The importance of remittances vis-à-vis most macroeconomic variables has changed in addition to their contribution to GDP. Remittances make a major contribution to our national economy by increasing foreign exchange reserves, per capita income and employment opportunities. Bangladesh has consistently received strong remittances as migrant workers work hard and make huge money abroad, thus expanding Bangladesh’s GDP (gross domestic product). In 2018, remittances sent by migrant workers accounted for 7.0 percent of Bangladesh’s total GDP ($ 195 billion). With these remittances, the government compensated for the lack of trade. The determining factors of the transfer are foreign employment, GDP growth and exchange rate and oil prices. Remittances are helping to alleviate poverty in Bangladesh by developing micro-enterprises, creating significant employment and income.

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