1.0 Background of the Study
Islami Bank Bangladesh Limited (IBBL) is the first of its kind in the South East Asia which was established in 1983 with a view to provide banking services based on Islamic principles. The bank, which started its operation with only 3 branches in the first year of its inception, has now 207 branches in 26 years of operation. As a bank, Islami Bank Bangladesh Limited receives deposits from its customers from all over the country as well as from abroad on profit and loss sharing basis and deploys that fund to different investment clients to gain profit. The bank distributes an agreed portion of the profit earned to the customers and the shareholders. Islami Bank Bangladesh Limited also performs foreign exchange business. In this process, the bank endeavors to contribute to the betterment of the society.
In the context of open market economy, the foreign exchange business is growing rapidly and playing a vital role in the economic growth of a country. About 40 % of total business of our country is rolling through foreign exchange transaction.
Islami Bank Bangladesh Limited has significantly contributed in flow of international transactions. Among the private commercial bank of our country IBBL is being kept the first position in export, import, remittance flow and as well as earnings the operating profit. Why I have chosen this topic, because to focus the foreign exchange banking performance of IBBL & its activities as based on Islamic Shariah.
This study is done to evaluate the over all activities of IBBL. Findings of the study may benefit the organization itself to take strategic decision on its future plan to enhance the volume of foreign exchange transaction. It may also benefit the readers as well as researchers who have particular interests in international trade finance.
1.1 Scope of the Study
The scope of this paper is to discussion of various aspects of Deposit Mobilization, Investment Mechanism & Foreign exchange operation of IBBL. This report aims to focus the actual practices “An Overview Of Foreign Exchange Operation” of Islami Bank Bangladesh Limited and its operations.
1.2 Objectives of the Study
The first objective of writing the report is fulfilling the partial requirements of the BBA program. The main purpose of this study is to have a better orientation on Foreign Exchange business performances of the bank. In this report, I have attempted to give an overview of Foreign Exchange Operation of Islami Bank Bangladesh Limited . Following are the main objectives ▪ To familiar the history and operations of Islami Banking in Bangladesh. ▪ To show the investment mechanism and product offerings in different modes of IBBL. ▪ To show overall investment proposal, appraisal procedures, documentation system of IBBL and Conventional Banks. ▪ To show an overview of Foreign Exchange Operation of IBBL. ▪ To show the differences with conventional banking regarding investments aspects ▪ To identify strength and weakness of investments of IBBL. ▪ To identify the problems related to investments faced by IBBL. ▪ To recommend actions that may be necessary to redesign the investments of IBBL.
The study is performed based on the information extracted from different sources collected by using a specific methodology. The methods of completing the report have included some steps which are followed by one by one. First of all I selected the topic of the report then I had to collect information relating to the topic by primary and secondary sources and through personal interview.As a Internee of IBBL it was easy for me to collect data. After gathering the information I had to determine the procedure of research and sampling plans. After gathering all the information I required, I have come up with an expected result of the...