Foreign Exchange Activities of Shahjala Islami Bank Limited
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
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