Foreign Exchange Activities of Shahjala Islami Bank Limited

Topics: Bank, Bangladesh, Retail banking Pages: 44 (10559 words) Published: April 25, 2013
1.1 BACKGROUND OF THE STUDY

Banking system occupies an important place in a national’s economy. A banking institution is indispensable in a modern society. It plays a pivotal role in the economic development of a country and forms the core of the money market in an advanced country .In recent times the banking sector over the world has been undergoing a lot of changes due to deregulation, technological innovation, globalization etc. Bangladesh banking sector is lagging far behind in adopting these changes. In general sense we mean “Bank” as a financial institution that deals with money. But when we use the term bank it generally means ‘commercial bank’ that collects the deposit from surplus unit of the society and then lends the deposits to the deficit units of the society. The word ‘Bank’ was probably derived from the word ‘Bench’s during ancient time Jews used to do money –lending business sitting on long benched. First modern banking was introduced in 1668 in Stockholm as ‘savings bank’, which opened up a new era of banking activities throughout the European Mainland. In the north Asia region, the afghan traders popularly known as Kabliwallas introduced early banking system. Muslim businessmen from Kabul, Afghanistan came to India and started money lending business in exchange of interest sometime in 1312A.D, they were known as Kabliwallas. All over the world the dimension of Banking has been changing rapidly due to Deregulation, Technological innovation and Globalization. Banking in Bangladesh has to keep pace with the global change. Now Banks must compete in the market place both with local institution as well as foreign ones. To survive and thrive in such a competitive banking world, two important requirements are Development of appropriate financial infrastructure by the central bank and Development of "professionalism" in the sense of developing an appropriate manpower structure and its expertise and experience. To introduce skilled Banker, only theoretical knowledge in the field of banking studies is not sufficient. An academic course of the study has a great value when it has practical application in real life situation. So, I need proper application of my knowledge to get some benefit from my theoretical knowledge make it more tactful.

When I engage myself in such fields to make proper use of my theoretical knowledge in my practical life situation, such all application is made possible through internship. When theoretical knowledge is obtained from a course of study at only the half way of the subject matter, internship implies on other the full application of the methods and procedures through rich acquired of subject matter can be forcefully applied in my day to day life situation. Such a procedure of practical application is known as internship. All over the world the dimension of Banking has been changing rapidly due to Deregulation, Technological innovation and Globalization. Banking in Bangladesh has to keep pace with the global change. Now Banks must compete in the market place both with local institution as well as foreign ones. To survive and thrive in such a competitive banking world, two important requirements are Development of appropriate financial infrastructure by the central bank and Development of "professionalism" in the sense of developing an appropriate manpower structure and its expertise and experience. To introduce skilled Banker, only theoretical knowledge in the field of banking studies is not sufficient. An academic course of the study has a great value when it has practical application in real life situation. So, I need proper application of my knowledge to get some benefit from my theoretical knowledge make it more tactful. When I engage myself in such fields to make proper use of my theoretical knowledge in my practical life situation, such all application is made possible through internship. When theoretical knowledge is obtained from a course of study at only the half way...
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