“Work experience and Evaluation on Foreign Exchange Trade Finance Division in context of Prime Bank Limited”

Abstract

Modern banking system plays a vital role for a nation’s economic development. Over the last few years the banking world has been undergoing a lot of changes due to deregulation, technological innovations, globalization etc. After globalization and free trade policy, now a day Bangladeshi manufactures as well as the exporter both are facing acute constrain to meet up the challenge. Foreign trade finance is one of the most important segments of banking sector. It deals globally and facilitates international trade through its various modes of service. It bridges between importers and exporters. The term “Foreign Exchange” has different connotations in different contexts. Sometimes it is referred to as the process of conversion of one currency into another, sometimes as the process of transferring money from one country to another. Specified legal definition is found in Bangladesh context. In terms of section 2(d) of the foreign exchange regulation (F.E.R) Act 1947, as adapted in Bangladesh, the meaning of foreign exchange is defined as: foreign currency and includes instruments expressed in foreign exchange, all deposits, credits and balance payable in foreign currency as well as foreign currency instruments such as Draft, TC, Bill of Exchange, promissory note and Letter of Credit in any foreign country. Bangladesh bank issues license to scheduled banks to deal with foreign exchange. Prime Bank’s performance in the area of foreign exchange department is highly appreciated and has positioned itself as a major player in the Bangladesh remittance market within a very short span of time. This report aims toward providing an overview on the Foreign Exchange Banking system in Prime Bank Limited. The report is prepared within the broader framework of Internship Program of the Business Administration Department, Independent University Bangladesh. While preparing this report it has been tried to reveal the insights of the foreign exchange banking system of the bank and a few recommendations and suggestions were also prescribed based on the observation and findings. To examine the efficiency of the Export management system, Letter of credit has been taken as the prime factor. Simultaneously analysis on the foreign exchange, foreign LC advising has also been done. Utmost care has been given to explain all necessary aspects related to the subject matter for easier and quick understanding of the report