An Analysis of Foreign Exchange Activities of Mercantile Bank Limited

Abstract

Bank is a financial institution which offers deposits against a certain percentage of interest. Subject to withdrawal of the money on demand and giving loans to the retail or corporate sector against with a handsome interest gain. There are different types of bank like Commercial Bank, Investment Bank, International Bank and Islamic Bank etc. Foreign Exchange means exchange of foreign currency or countries own currency with another or between two countries. If we consider FOREIGN EXCHANGE as a topic and then it means all kind of transaction which is related to foreign currency like Dollar, Euro and JPY etc. In other words FOREIGN EXCHANGE deals with foreign currencies and foreign financial transactions. We can explicate FOREIGN EXCHANGE as the measure and manner by which authority to wealth demonstrated in terms of the currency or money of one country are transforms into war to be the wealthiest in terms of currency of another country. FOREIGN EXCHANGE frisk a very indispensable role in the balancing of payment of a nation. FOREIGN EXCHANGE use to keeps within its fold import (purchase), export (sale) of goods across the cross borders around the world. In this report we can see the discussions about the origin, Objectives, Scope & Limitations of this study. In this report we can see the discussion about the Principles, Rules, Regulations and Laws applied and followed by Mercantile Bank Bangladesh limited. Here we can see there is an overall review or overview of MBL is presented, where the mission vision goal and other perspective of MBL is presented. Also the current top management, authorities, all the remarkable achievements of MBL From 1999-2019. This report will try to keep your focus on Foreign Exchange activities, Import, Export, Remittance, LC/Letter of Credit etc. the study will cover the processing of LC, how it works in Import and Export Business. The role played by the both banks who is related on this LC. For analysis part will cover financial data on overall Import, Export and Remittance position of mercantile bank since 2014-2019. These positions are analyzed with graphical representation. Also after analyzing the bank there is a comparison of MBL with top rated FOREIGN EXCHANGE performed banks. This comparison is also shown under graphical presentation. My findings and Recommendations for Mercantile Bank after working 3 months, My observations & Solutions based on my observation has been presented. Conclusion and all the references related to my report is presented in the final chapter. MBL has strong administration, extraordinary baking investment team, huge vision, talented employees and athletic determination to achieve their goals. Also all the officials of Mercantile Bank are very much gregarious and supportive. From higher authorities the MBL ran an over through analysis on some of their lacking’s. Where they identified such as employee are suffering from poor training facilities and FOREIGN EXCHANGE related inner rules restrictions & charges are not clear to the clients. To get more qualified superiority MBL should get rid of these types of lack and unavailability. It will help them to hold their powerful position in the banking sector and Bangladeshi economy.