Sme Banking

Powerful Essays
Topics: Bank, Interest
Case-Study-on-SME-Banking
Introduction
1.1 Origin of the Report:
In recent days the Small and Medium Enterprise (SME) Financing has become an important area for Commercial Banks in Bangladesh. To align its corporate policy with the regulation of Central Bank, banks have become more concerned about SME and opened windows to conduct business in this particular area. This study has been conducted to fulfill the requirements of sixth term MBM program and gain an insight about the present condition of small and medium enterprise in the economy of Bangladesh and their financing scenario in light of Bangladesh Bank regulation.

1.2 Background of the Study:
After Liberation of Bangladesh, intensive efforts were undertaken to accelerate the rate of industrialization in the country. At the beginning, import substitution and subsequently export-led economic growth strategy was pursued for industrialization. In order to attain this objective, large amount of industrial credit was funneled to the industrial sector. But the whole exercise of industrialization came to a halt with the massive diversion of resources to other non priority sectors. Policy makers, of late, have come to recognize the contribution of SME sector towards economic development in the country. Small and medium enterprises have been recognized as one of the most important means for providing better economic opportunities for the people of least developing countries like Bangladesh. A developing economy like that of ours suffers from many peculiar problems such as disproportionate pressure of population on agriculture due to lack of rural industrialization, unemployment and underemployment of human and materials resources, unbalanced regional development etc. The contribution of small and medium enterprises in the solution of these problems is beyond doubt, provided they are organized and run on scientific basis.
Small and medium enterprises are particularly suitable for densely populated countries like

You May Also Find These Documents Helpful

  • Powerful Essays

    Sme Banking of Mbl

    • 1584 Words
    • 7 Pages

    Chapter Two: Organizational Profile 2.1. Organization Overview Mercantile Bank Limited emerged as a new commercial bank to provide efficient banking services with a view to improving the socio-economic development of the country. The philosophy of Mercantile Bank Ltd is not to ‘carry coal to the new castle'. The main target is to make credits available to the poor people and their activities are aimed at comprehensive growth where people from all economic…

    • 1584 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Sme Banking in Bangladesh

    • 1174 Words
    • 5 Pages

    SME Banking in Bangladesh. OVERVIEW OF SME: ---------------- According to the European Union (2003) SMEs are defined as enterprises which have at most 250 employees and an annual turnover not exceeding 50 million Euros. According to the World Bank (2006) medium enterprises are defined as enterprises which have at most 300 employees and an annual turnover not exceeding 15 million US dollars. In the context of Bangladesh, the development of Small and Medium Enterprises (SMEs) can be considered…

    • 1174 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Small and medium enterprises (SMEs) are critical for the economic and social development of emerging markets. They play a major role in creating jobs and generating income for low income people; they foster economic growth, social stability, and contribute to the development of a dynamic private sector. As such, access to financial services is vital in developing a vibrant SME sector in any economy. In many emerging markets, however, access to financial services for SMEs remains severely constrained…

    • 445 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    SouthAsia Enterprise Development Facility (SEDF) Results of the Banking Survey of the SME Market in Bangladesh Sector Report February 2006 SouthAsia Enterprise Development Facility (SEDF) Results of the Banking Survey of the SME Market in Bangladesh Sector Report February 2006 © PA Knowledge Limited 2006 Prepared for: Prepared by MIDAS PA Consulting Group The Chrysler Building 405 Lexington Avenue New York, NY 10174 USA. info@paconsulting.com www.paconsulting.com e.Gen Consultants…

    • 27529 Words
    • 111 Pages
    Satisfactory Essays
  • Powerful Essays

    Determinants of SMEs Perceptions towards Electronic Banking Dr Ahmad Kaleem Associate Professor Department of Business Administration Lahore School of Economics, Lahore, Pakistan. Email: drkaleem@lahoreschool.edu.pk Abstract Electronic distribution channels have gained increasing popularity in recent years. It provides alternatives for faster delivery of banking services to a wider scope of customers. This study aims to collect the SMEs owners/executives/managers perceptions…

    • 7349 Words
    • 30 Pages
    Powerful Essays
  • Good Essays

    Smes

    • 3246 Words
    • 13 Pages

    AND CHALLENGES FACING THE GROWTH OF SMEs IN KENYA CHAPTER ONE; INTRODUCTION 1.1 BACKGROUND In recent years, the nurturing of SMES have become the dominant theme of development economics. This rediscovery of the importance of the spirit of free enterprise was undoubtedly prompted by the failure of centrally planned communist economies. The achievement of impressive prosperity by certain East Asian and western countries also encouraged the start up of SMES (Mwaura, 2006) A global perspective…

    • 3246 Words
    • 13 Pages
    Good Essays
  • Powerful Essays

    Smes

    • 2617 Words
    • 11 Pages

    International Journal, 11:3, 231-246 Newberry, D., (2006) The Role of Small- and Medium-Sized Enterprises in the Futures of Emerging Economies. [Online] Storey D (1994) Understanding the Small Business Sector, Routledge, London. Wynarczyk, P. (2011) SMEs: Evolution and Revolution Periods, Newcastle: Newcastle University Business School Websites http://en.wikipedia.org/wiki/Pareto_principle…

    • 2617 Words
    • 11 Pages
    Powerful Essays
  • Satisfactory Essays

    Sme in Bangladesh

    • 2349 Words
    • 10 Pages

    Introduction 1.1 Origin of the Report: In recent days the Small and Medium Enterprise (SME) Financing has become animportant area for Commercial Banks in Bangladesh. To align its corporate policy withthe regulation of Central Bank, banks have become more concerned about SME andopened windows to conduct business in this particular area. This study has beenconducted to fulfill the requirements of sixth term MBM program and gain an insightabout the present condition of small and medium enterprise…

    • 2349 Words
    • 10 Pages
    Satisfactory Essays
  • Powerful Essays

    Sme Malaysia

    • 6976 Words
    • 28 Pages

    Vol. 3, No. 1 International Business Research Small and Medium Enterprises (SMEs) Competing in the Global Business Environment: A Case of Malaysia Mohd Zulkifli Muhammad (Corresponding author) School of International Business and Finance Labuan Universiti Malaysia Sabah, Labuan International Campus, 87000, F.T Labuan, Malaysia Tel: 60-87-460-498 E-mail: zulrider@yahoo.com Abdul Kamal Char School of International Business and Finance Labuan Universiti Malaysia Sabah, Labuan International…

    • 6976 Words
    • 28 Pages
    Powerful Essays
  • Good Essays

    Sme Policy

    • 9298 Words
    • 38 Pages

    ABBREVIATIONS………………………………………………………………… FOREWORD 1.0 2.0 INTRODUCTION SME DEVELOPMENT 2.1 2.2 2.3 2.4 ………………………………………………………………………………. IN TANZANIA…………………………………………………….……… Definition ………………………………………..........…………. Importance of Small and Medium Enterprises ………………………… Government Effort…………………………………………… ……………… 5 Constraints faced by SMEs in Tanzania ……………………………….. …………………….………..……… iii v 1 3 3 4 8 10 11 11 11 11 11 3.0 4.0 RATIONALE FOR THE SME DEVELOPMENT POLICY OBJECTIVES OF THE SME POLICY 4.1 4.2 4.3 4.4 …………………………………………………

    • 9298 Words
    • 38 Pages
    Good Essays