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Banking Performance
June 5, 2008 [pic]

Principles of Banking

Functions Performed By Commercial Banks in Bangladesh

A brief Study on the overall banking function of the commercial Banks in the Domestic Arena of Bangladesh

By: Jewel Chakraborty Section – F. ID No # 072-11-1953
BBA 17th Batch
D.I.U

5th June, 2008

Md. Shahidul Islam Zahid Course Instructor
Principles of Banking
Daffodil International University

Subject: Submission of Assignment

Dear Sir,

Please find attached herewith the assignment on “Functions performed by Commercial Banks in Bangladesh” Which I was asked to prepare. The experiences I obtained through making this assignment will help me a lot in future. As it is the first Report on Banking, we hope that your generous evaluation will allow us to overcome the lacings and help to next progress.

We are looking forward for your permission to submit the same.

Thanking you with regards.

Sincerely yours,

__________
Jewel Chakraborty
Section – F.
ID No # 072-11-1953
BBA 17th Batch
D.I.U
Financial Institutions perform the essential function of channeling funds from those with surplus funds to those with shortage of funds.

Commercial Banks have a great contribution to the following arena-

• Contribution to the foreign exchange • Contribution to the home trade • Contribution to the agricultural development • Contribution to the industrial development • Contribution to other economic areas

Commercial banks perform two kinds of functions:

1. Micro Functions

• Collection of deposit • Credit extensions • Receiving interest • Creation of medium of exchange • Issuing of cheque • Circulation of money

2. Macro Functions

• Capital formation • Role in economic development • Transmission of money • Industrial
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