Analysis of Commercial Bank Operation and Regulation-Case Study on Dhaka Bank Limited

1. Conclusions : Mercantile Bank Limited is one of the pioneer banks of Bangladesh banks in respect of customer service, profitability and strength among the private commercial banks;. According to my research and study on the bank I think the bank has achieved a good level of success by having 93 branches around the whole Bangladesh. Mercantile Bank Limited has also set up a new standard in financing in the industrial, trade and foreign Exchange Business. Different retail banking products of Mercantile Bank Limited also gets the attention of the customers.

Political conflict in Bangladesh has led to corruption, poverty and severe problems in the whole system. The country is facing increasing instability. A political power vacuum is being filled by radical Islamists, posing a threat to the secular-democratic system. But the

B. Financial Comparison of the NCB, PCB, FCB & SDB Banks in Bangladesh---C. Financial Comparison of Private and Foreign banks through ranking----------

Commercial banks have played a vital role in giving direction to economic development by catering the financial requirement of trade and industry in the country. By encouraging thrift among the people, commercial banks have fastened the process of capital formation. Banks draw the community savings into the organized sector which can then be allotted among the different economic activities according to the priorities laid down by planning authorities in the country. ‘The banks are not only the safe deposit vaults for these savings, but taking the banking system as a whole, they also create deposits in the process of their lending operations. However, the important function of a banker is the

Prepared for: Mr. Shubhankar Shil. Assistant Professor, School of Business University of Liberal Arts Bangladesh (ULAB)

In modern life we cannot think without banks and financial institutions. All financial transactions such as export, import, buying, selling, loan and borrowing are dependent on bank system. Economic stability socio-economic development, international business affairs all are interrelated with banking system. The history of banking system is old. It is derived from reserve system of grains and after exchange of money. History of banking system in our subcontinent especially our country is not old. Bangladesh is a developing country, in where, limited resources, burden of overpopulation, economic instability, political instability, corruption, natural disaster, are always hindering the development. The high performance of remittance has a greater contribution in present economic stability of the country, when we can convert the burden of overpopulation toward better human resource through effective human resource management, skill development program, training, education, creating new working sector to reduce unemployment, emphasis on entrepreneurship. Only banking system or financial institutions may convert the overpopulation into better human resource by providing soft loan for building new working sector for employment, encouraging people to be efficient in one’s working aria. This assignment has been written or created on the basis of performance management in banks and financial institutions in perspective of Bangladesh. Performance management is an

Bangladesh came to today 's shape through a long history of political evolution. Bengal was probably the wealthiest part of the subcontinent up till the 16th century. The area 's early history featured a succession of Indian empires, internal squabbling, and a tussle between Hinduism and Buddhism for dominance. All of this was just a prelude to the unstoppable tide of Islam which washed over northern India at the end of the 12th century. Mohammed Bakhtiar Khalzhi from Turkistan captured Bengal in 1199 with only 20 men. That was just the beginning. The journey of Bangladesh goes on.

The commercial banking system dominates Bangladesh's financial sector. Bangladesh Bank is the Central Bank of Bangladesh and the chief regulatory authority in the sector. The banking system is composed of four state-owned commercial banks, five specialized development banks, thirty private commercial Banks and nine foreign commercial banks. The Nobel-prize winning Grameen Bank is a specialized micro-finance institution, which revolutionized the concept of micro-credit and contributed greatly towards poverty reduction and the empowerment of women in Bangladesh.

Bangladesh is a south Asian country and has an approximate population reaching 164 million. The manufacturing industry is what Bangladesh is known for. That industry also accounted for almost 12% of GDP in 2009 and 2010 with employing over four million people (The Bangladesh Accord Foundation, 2014). The labor force is made up of young, urbanizing, mainly women. Bangladesh accounts for approximately 78% total exports (The Bangladesh Accord Foundation, 2014), which is second to China.

AB bank limited first started on line banking service in Dhaka city. After that all branches of AB bank started online banking service. By flowing AB bank limited, now all private commercial banks are providing any branch banking service by online banking technology. On line banking is one of most important service of commercial bank. All commercial banks in Bangladesh trying to improve their service by using modern technology like online banking. And time to time they are improving their performance in different parts of banking. Commercial banks are generating more revenue and deposit, providing more advance, generating more assets and maximizing equity. All of these are possible for efficient and faster

Bangladesh is located in South Asia. It is the seventh most populous country in the world and is mostly densely inhabited. The poverty level, however, has fallen by more than 20%, helped by its prominent agricultural sector. The Bangladeshi economy is helped by its big garment sector, which contributes more than two-thirds of the country’s trade. The major challenge to prosperous growth is the vulnerability of the land to cyclones and floods. However, even with such challenges, Bangladesh has experienced a growth rate of 5% since 1990. This growth has been helped by remittances from expatriates as well.

From the very beginning of the bank history, we already know that the main operation of bank is to take loan and to make deposit. Since the first bank established in 12th century, bank is no more a simple institution where we exchange money but an agency considered to be speculative and hopeful. There is no doubt that the prosperity in modern society benefits a lot from the development of commercial activities, where bank plays a main role in. People make money through work or investment. So they divide their income into two major parts : one part is considered as profit ,with which people may consume or do reinvestment or put it

The Bangladesh Bank introduced an Islamic money market – that is, the Islamic Interbank Fund Market – in 2012 to help address the temporary and short-term liquidity problems and facilitate the liquidity management of Islamic banks. The central bank acts as custodian in the market. Interbank transactions, limited to overnight tenors, are based on a pre-determined profit-share ratio decided by a central bank committee using Islamic banks’ deposit rates as a starting reference.

Deposit Money: They collect deposit from public who want to deposit a lump sum of money for a fixed time period; say for a minimum period of 1,3,6,12 or 24 months period, thereby earning a higher rate of interest in return.Three 's also eligibility for depositors for example minimum has to be 18 and he/she has to be a citizen of Bangladesh. Other key features are customer will get 80% loan facility on deposited amount and it can be opened for 3 months,6 months,12 months or 24 months,

The Bangladesh Bank Order of 1972 outlines the main objectives of monetary policy in Bangladesh, which comprises—