This report has been primed as a requisite of the AIUB (American international university of Bangladesh) internship program under the supervision and guidance of Mohammad Zakaria Masud, Faculty Member, School of Business, in American International University Bangladesh (AIUB).
2. BACKGROUND AND RATIONAL OF THE STUDY:
Bangladesh has gone through different Banking system. Banking system of Bangladesh has moved out three phases of development - Nationalization, Privatization, and lastly Financial Sector Reform. In Bangladesh, now-a-days more than 50 commercial & specialized banks are conducting their operations, but they differ from one another in many ways regarding their services. In the banking system the department of foreign exchange is very foremost section where letter of credit (LC) is the primary financial tool which used in the most import and export transactions. Guaranteed payment upon presentation of the documents, reducing the production risk, obtain financing for production or purchase of goods, allows the importer to avoid or reduce pre-payment and also the payment will be made only upon presentation of the documents confirming shipment of the goods. All these help the bank to deals with the customers in the country and also outside the country.
With due consent of my supervisor, I have selected my area of interest in this particular aspect and set my internship topic as “Letter of Credit Operation and its impact on DHAKA Bank Limited”. I deem my effort will provide not only theoretical knowledge but also practical experience which helps to know how bank perform Letter of credit transaction practically. The letter of credit is the safest, most secure and most convenient settlement method for international transactions. In Bangladesh there are different banks works for developing not only the customer’s satisfaction but also the countries economic development. DHAKA Bank is one of them; does all the customization...