Analysis of Recent Worker Remittance Operations of Citibank in Bangladesh

Topics: Bank, Bangladesh, Central bank Pages: 20 (5786 words) Published: September 23, 2008

Bangladesh is a developing country with a population size of around 140 million. 3.28% of its population, working at various foreign destinations mainly as economic migrants has made it one of the major manpower exporting country of the world. Kingdom of Saudi Arabia is the single biggest overseas job market for Bangladeshis. Citibank N.A. Bangladesh, being the correspondent bank of SAMBA, a well-known financial group of Kingdom of Saudi Arabia (KSA), has been offering remittance services to Bangladeshi Nationals residing in Saudi Arabia for the last 13 years.

1.1 Origin of the report

This report is the outcome of the study conducted as a term paper requirement for the course “Managerial Communication” in the 1st semester of the MBA program at Institute of Business Administration.

1.2 Problem and Purpose

Analysis of the remittance trend in Bangladesh to understand current remittance scenario. •Analysis of the illegal money transfer channels to better understand its effect on the formal money transfer channels •Analysis of the entire remittance process and structure of Citibank N.A. Bangladesh •Developing recommendations to add more dimensions to the remittance process of Citibank based on analysis and findings.

1.3 Scope

The study covered mainly the remittance from Saudi Arabia and has been conducted within the Citibank N.A. officials through in-depth interview.

1.4 Limitations

It was not possible to get accurate information on the illegal money transfer through illegal channels.


Citigroup is the world’s largest, most global and most diversified financial services providers with millions of customer accounts in more than 100 countries. Citibank N.A., the banking arm of Citigroup, established its presence in Bangladesh in 1987 through a representative office. Citibank N.A. has been successfully offering remittance services since 1995. However it has been only catering to the need of market in Kingdom of Saudi Arabia (K.S.A). There are avenues for the bank to increase its remittance volume and revenue through innovation of new policies and careful implementation of existing ones.

1.6 Sources and Methods of Collecting Information

The data has been collected from both primary and secondary sources. The major sources are: •Face-to-face interview with some personnel at different hierarchies of Citibank N.A., Bangladesh. •Local and international newspapers, magazines, government circulars and various websites •Materials on the subject matter supplied by the bank

Various analysis techniques such as Trend Analysis, Quantitative Analysis, Qualitative Analysis and SWOT Analysis have been used to analyze the raw data in order to fulfill the objectives of the report. 1.7 Report Preview

This analytical report is divided into five chapters. The first chapter is the introduction. The second chapter presents the current remittance scenario of Bangladesh by the discussion of outside employment, different fund transfer systems and market analysis of remittance. The third chapter includes an in-depth financial Analysis of remittance position of Citibank N.A. Bangladesh. The last two chapters include conclusion and recommendation respectively.

Current Remittance Scenario

Bangladesh, being a huge labor surplus country, belongs to the supply side of the global labor market. Flow of migrant workers is associated with growing flow of remittance to Bangladesh. Different macro-economic reforms to increase official flow of remittance have been encouraged by the successive governments since 1990. Although there is widespread presence of different formal institutions for remittances and many of them are gradually penetrating the market, a large number of migrant workers still prefer to remit their earnings through informal systems. This chapter discusses both formal and informal fund transfer systems to send remittance in Bangladesh...

Bibliography: 1. Leonides Buencamino and Sergei Gorbunov, Informal Money Transfer System: Opportunities and Challenges for development finance. November 2002
2.Patrick M. Jost and Harjit Singh Sandhu, The hawala alternative remittance system and its role in money laundering .January 2000
3. Hawala and Other Informal Value Transfer Systems: How to Regulate Them?
Adapted from a paper published in Risk Management [2003]
4. Tasneem Siddiqui and Chowdhury R. Abrar ,Migrant Worker Remittances and Micro-Finance in Bangladesh
5.Hill, Charles W. L. and Gareth R. Jones. Strategic Management Theory. (5th edition). Houghton Mifflin Company.
6.Hawkins, Del I. Best, Roger J. and Coney, Kenneth A. Consumer Behavior. (7th edition). McGraw-Hill.
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