Foreign Exchange Procedure of Shahjalal Islami Bank Ltd. – A Study at Uttara Branch

Abstract

Banks play a vital role in the economic development of a country. One of the major functions of commercial banks is to take deposit and give away this money as loans for investment purposes. These investments contribute positively to the GDP of the country. Apart from contributing to investment opportunities, banks also play an important part in the import of goods. This brings foreign currency to the country. This report is prepared on the basis of my three months practical experience at Shahjalal Islami Bank Limited. The internship program helped me to learn about the practical condition of a financial institution. This program helped me to implement my theoretical knowledge into practical and realistic work environment. Shahjalal Islami Bank Limited is a scheduled Islamic commercial bank registered by the Bangladesh Bank. Shahjalal Islami Bank follows the rules and regulations prescribed by the Bangladesh Bank for Scheduled commercial banks. The functions of the bank cover a wide range of banking and functional activities to individuals, firms, corporate bodies and other multinational agencies. In this report I‟ve discussed about the various activities of the bank. I‟ve covered the foreign exchange procedure of this bank in detail. The foreign exchange department mainly consists of three sections: import, export and remittance. There are lots of steps involved in each of these foreign exchange functions. There are different terms that must be understood in order to know the entire process of import and export. All these have been covered thoroughly in this report. I‟ve done the SWOT analysis of the bank found out the opportunities it has in future and the limitations that are hindering its growth. The findings of the research have been discussed. I‟ve given my recommendations as well on how to improve the foreign exchange functions of the bank. This report will help those who want to understand how the foreign exchange department of a bank works. As lots of research has been done for writing the report, it will be an asset for the bank and act as a point of reference to help them improve their services in future.