Banking Performance Essay

Financial Performance

Summer 5, 2008


Principles of Banking

Functions Performed By Business Banks in Bangladesh

A brief Study within the overall bank function with the commercial Banking companies in the Home-based Arena of Bangladesh

Simply by: Jewel Chakraborty

Section – F.

IDENTIFICATION No # 072-11-1953

BBA 17th Set

D. We. U

5th June, 2008

Md. Shahidul Islam Zahid

Course Trainer

Principles of Banking

Daffodil International School

Subject: Distribution of Job

Dear Friend,

Please find attached herewith the assignment on " Functions performed by Industrial Banks in Bangladesh” Which I was asked to prepare. Any potential problems I received through making this assignment will assist me a whole lot in future. Since it is the first Report in Banking, really is endless that your generous analysis will allow all of us to overcome the lacings and help to next improvement.

We are looking forward for your agreement to submit a similar.

Thanking you with regards.

Sincerely yours,


Jewel Chakraborty

Section – F.

IDENTIFICATION No # 072-11-1953

BBA 17th Group

D. We. U

Finance institutions perform the main function of channeling money from individuals with surplus cash to those with shortage of money.

Commercial Financial institutions have a fantastic contribution towards the following arena-

• Contribution to the foreign exchange

• Contribution to the residence trade

• Contribution to the agricultural development

• Contribution to the industrial development

• Contribution to other economical areas

Commercial banks conduct two varieties of functions:

1 . Micro Functions

• Variety of deposit

• Credit extension cables

• Receiving interest

• Creation of medium of exchange

• Issuing of cheque

• Circulation pounds

2 . Macro Functions

• Capital formation

• Role in economic development

• Transmission pounds

• Professional development

• Agricultural creation

• Help in export – import organization

• Consultancy

• Employment creation

• Act as treasurer of government

Types of Consideration

Through accounts bank provides services to customers to do the orders. Bank account is vital to perform both the major capabilities of lender, which are, pay in banking and lending. Various kinds of account are mentioned below from distinct perspective –

Classification as per Nature of Accounts:

• Current Pay in Account

• Saving Deposit Account

• Fixed Put in Account

• Monthly Deposit

• Temporary Deposit Consideration

• Foreign Currency Deposit

• Non Citizen Taka Bank account

• No Resident Foreign Currency Account

• Resident Money Deposit Account

Trading Concern:

• Proprietorship

• Relationship

• Community Limited

• Private Limited

• Accounts of Liquidators

Non- Trading Concern:

• Club Society

• Institutions

Official Accounts:

• Accounts of Government

• Accounts of Corporation

• Accounts of Autonomous Body

Foreign Currency Account (FCA)

• Low resident Bangladeshi, foreigner moving into Bangladesh, international institution, responsibility free shop, Joint Venture Organization and those who have earn money can open FC account. • Although those Bangladeshi who work in any Bangladeshi mission can not open this kind of account. • No interest paid about FC consideration but it can be not current account. • Not any withdrawal restriction.

Non Citizen Foreign Currency Consideration (NFCDA)

• Like term deposit.

• Those Bangladeshi who work in any Bangladeshi mission could also open this kind of account. • Interest is manufactured based on LIBOR.

Resident Foreign exchange Account (RFCDA)

• Just like term put in.

• After returning country one must deposit the dollar with this account within 30 days.

Non-Resident Taka Accounts (NRTA)

• Like personal savings...