Foreign Exchange Activities Regarding Export and Import of Islami Bank Bangladesh Limited
Subject: Banking | Topics:

 Executive Summary

The establishment of Islami Bank Bangladesh Limited on March 13, 1983, is the true reflection of this inner urge of its people, which started functioning with effect from March 30, 1983. This Bank is the first of its kind in Southeast Asia. It is committed to conduct all banking and investment activities on the basis of interest-free profit-loss sharing system. In doing so, it has unveiled a new horizon and ushered in a new silver lining of hope towards materializing a long cherished dream of the people of Bangladesh for doing their banking transactions in line with what is prescribed by Islam. This report is basically based on strategically analysis and design procedure foreign exchange activities of Islami Bank Bangladesh Limited (IBBL), which is related to export and import respective.

 This report aims to develop a speedy Web- based order tracking information system, which will effectively meet exporting and importing related transaction through letter of credit of the bank clients as well as employee’s of the bank. To analyze and design of the proposed system, the report has taken in depth investigation to understand the current business process related to export & import after analyzing the current process, the requirement specification of the proposed system has been made. The executive officer of foreign exchange department adopted various type of system approach methodology and strategy, which include customer tracking procedure, issuing

Export& Import of products, design and proper implementation export- import related policy and procedure. In the finding and analytical of the report, various flow diagram have been extensively used to understand to understand the basic process precisely of the functioning of export and import through Letter of credit. In the design part entity relationship diagram is made to draw the conceptual and physical attribute of the system. The foreign exchange principal officer and IT specialist also adopted object oriented design and development methodology  ( OODM ) in which unified modeling language ( UML ) use different statistical chart and sequential diagram have been made. The archetype of user interface has also been designed in the research paper.

 For the growth and development of our economy, export & import earnings should be groomed up and import also should be enriched in keeping mind for the essentials. It is because foreign exchange helps optimize the growth and development of a country. That will ultimately develop the professionalism of our banking industry. According to economic cycle, the more export finance, the more employment, the more income, the more savings and the investment again. Islami Bank Bangladesh limited is doing the needful according to the earlier mentioned economic cycle.


Foreign exchange plays a very important role in the balance of payment of the country. Foreign exchange takes within its fold purchase (import), sale (export) of goods and services across the boarders. Although foreign remittance is a component of the Current Account Transaction and as such part of foreign trade, the area is being given special attention due to its immense contribution in national economy.

Bangladesh being one of the emerging economies, the import mix of the country is built of multifarious items from cookies to capital machinery. On the other hand the major items of export for more than a decade have been Readymade Garments which replaced the traditional items of jute, tea and leather in terms of value and volume. In this time of globalization, countries tend to export the items in which they have competitive advantage and import those items where they lack the advantage. Import meets the need of consumer goods, industrial inputs and other essentials causing outflow of foreign currency while Export business takes the role of minimizing the gap in balance of trade through inflow of foreign currency by remittance business.

Traditionally, import business of the country surpassed export business in terms of value. Same is the case for individual banks, which bridge the exporters and importers of the country with the rest of the world. Islami Bank Bangladesh Limited being the leading private sector bank in respect of foreign exchange business has grown tremendously in the past decade. The involvement of the bank in the industrial sector as well as in the commercial sector has raised the import business of the bank disproportionately with that export business. Foreign remittance and export business of the bank jointly maintains a precarious balance with import business. In this backdrop, in order to optimize the foreign trade business to maintain a good balance between the inflow and outflow of foreign currency, to extend the banks position in foreign trade of the country, to emerge as a major foreign exchange market player in the country and thereby ensuring the stability of foreign exchange market of the country, the need for a Further study of the bank is being felt very deeply. This study will help to focus the issue and may raise further steps of the same.

Objective of the Study:

The main objective of the study is to gather practical knowledge regarding banking system and operation. This practical orientation gives us a chance to Co-ordinate out theoretical knowledge with the practical experience. The following are of objective for this practical orientation in bank:

  • To apply theoretical knowledge in the practical field.
  • To find out the overall pictures of Foreign Exchange Business of IBBL.
  • To identify the problems and probable solutions related Foreign Exchange Business faced by IBBL.

Rationale of the Study:

Realistic orientation in different organizations is the concluding Project paper requirement of MBA program. This paper is prepared based on an dissertation program. I have started my career in International Banking Wing of IBBL (controlling authority of Foreign Exchange business of IBBL). So that I have prepared my project paper on foreign exchange as it is assigned by my supervisor.

The project paper is titled as Foreign Exchange activities regarding export and import of IBBL: an Analysis. The emerging issues & strategies of Foreign Exchange Management of Islami Bank Bangladesh Limited is not very available and overall data regarding Foreign Exchange is not meet the requirement of any freshet’s need and any professionals or researchers. I am optimist that any further study in this regard will make a bridge between the backdrops.

Methodology of the Study:

For moving out this project paper I had to study the actual banking maneuver especially foreign exchange and foreign exchange management of IBBL. For the purpose of the study, data have been collected both from the primary and secondary sources.

a.   Primary sources of data:

I discussed with the executives & officials of the IBBL and found the approximate data which has been presented in the report. The study have been conducted through the assistance International Banking Wing (IBW), Head Office of IBBL as per their monitoring / formulating policy issues for enhancing their foreign exchange business through applying modern and technological means. I have been also physically visited to observe the effectiveness of the efforts relating foreign remittance effectively and efficiently managed by IBBL.

Secondary sources data:

The researcher has collected secondary data from the following sources:

  • Annual Reports of 2002-2009 of Islami Bank Bangladesh Ltd.
  • Manuals of Islami Bank Bangladesh Limited regarding Foreign Exchange
  • Important publications on foreign exchange and foreign remittance.
  • Foreign Exchange Regulation Act, 1947 and Money Laundering Act. 2002
  • Foreign Exchange Circulars and instruction letters.
  • Important publications on foreign exchange and foreign remittance.
  • Journals / News paper articles relating performances of banks on earnings foreign remittance.
  • IslamiBankBangladeshLimitedWebsite-
  • Bangladesh Bank Web site
  • Synopsis and training materials provided by Bangladesh Bank and Islami Bank Training and Research Academy (IBTRA).

For tertiary sources of data the researcher has used references from the articles and journals utilized and have also utilized electronic data sources such as the internet.

Data Analysis Techniques

To analysis the study result and investigation the researcher used the following tools and techniques:

1. Pie chart

2. Bar chart

3. Frequency distribution

Constraints of the Study:

There were some specific Constraints while I conducting the Dissertation Program though I applied a wholehearted effort to conduct the Dissertation Program and bring a reliable and fruitful result. In spite of my Endeavour there are some constrains exists which are

  • Since the major source of the data was secret, a lot of important data could not be used in preparing this report.
  • Lack of available published data.
  • There is a difficult mater to collect sufficient data from banks. Many expected data I have failed to collect. So, lack of sufficient data is one of the most limitations of preparing this report.
  • Most of the essential data are confidential for the bank. So, there is a lack of primary data.
  • Lack of in depth knowledge and analytical ability for wring such report.
  • Since I, a researcher, am not professional, the accuracy of surveys may not have been completely flawless.

Islami Banking

An Islamic bank is a financial institution which operates with the objective to implement and materialize the economic and financial principles of Islam in the arena of banking.

“An Islamic Bank is a financial institution  whose status, rules and procedures expressly state its commitment to the principle of Islamic Shariah and to the banning of the receipt of interest on any of its operations”-OIC.

The Organization of Islamic bank is a “company which carries on Islamic banking business. Islamic banking business means banking business whose aims and operations do not involve any element which is not approved by the religion Islam” (Act No 4.278).

Chapter- 2

Movement of Islamic banking throughout the world including Bangladesh

The expansion of Islamic banking along with traditional interest based banking is a recent phenomenon. During the fifties it was only  a subject matter of research but  during the sixties actual experiments were made and in the seventies Islamic banking institutions started to gain strength .The eighties and nineties are the period of consolidation and now Islamic banking is coming up as the only welfare banking system of the modern world.

Objective of Islamic banking:

Islamic banks operate on Islamic principles of profit and loss sharing, strictly avoiding interest, which is the root of all exploitation and is responsible for large-scale inflation and unemployment

The objectives of Islamic banking are not only to earn profit, but to do good and welfare to the people. Islam upholds the concept that money, income and property belong to Allah and this wealth is to be used for the good of the society.

An Islamic bank is committed to do away with disparity and establish justice in the economy, trade, commerce and industry; build socio-economic infrastructure and create employment opportunities.

Goals and Objectives of IBBL

  • To conduct interest free banking
  • To establish participatory banking instead of banking on debtor-creditor relationship
  • To invest through different modes permitted under Islamic Shariah
  • To accept deposits on profit-loss sharing basis
  • To establish a welfare-oriented banking system
  • To extend co-operation to the poor, the helpless and the low-income group for their economic uplift
  • To pay a vital role in human development and employment generation
  • To contribute towards balanced growth and development of the country through investment operations particularly in the less developed area.

 Mission of IBBL:

To establish Islami Banking through the introduction of a welfare oriented banking system and also ensure equality and justice in the field of all economic activities, achieve balanced growth and equitable development through diversified investment operations particularly in the priority sectors and less development areas of the country to encourage socio-economic enlistment and financial services to the low-income community particularly in the rural areas.

Vision of IBBL:

Vision of IBBL is to always strive to achieve superior financial performance, be considered a leading Islami Bank by reputation and performance.

  • Goal of IBBL is to establish and maintain the modern banking techniques, to ensure the soundness and development if the financial system based on Islami principles and to become the strong and efficient organization with highly motivated professionals, working for the benefit of people, based upon accountability, transparency and integrity in order to ensure the stability of financial system.
  • IBBL will try to encourage saving in the form of direct investment.
  • IBBL will also try to encourage investment particularly in projects, which are more likely to higher employment.

 Shariah Council of IBBL:

Profile of Council Members:

The Shariah Council of Islamic Bank generally consists of experts from the following four areas:

Fuqaha: Persons representing this group must be well versed in the Quran, Sunnah and fully conversant with the opinion of all schools of Islami thought and Islami law and jurisprudence. They must view Islam as a total way of life and a living religion.

Banker: There must be a member who is fully conversant with banking law and practices and has practical experiences in Banking business including foreign trade.

Economist: A member from this group need not necessarily be an Islami economist to start with. But if he is an Islami Economist it is an added advantage. What is important is that he must be really proficient in modern economies with an in depth study of the community, which a bank is going to solve. He must have up to date knowledge in the development of the contemporary world.

Lawyer: A member representing this group should be a successful practitioner lawyer. He must be proficient in commercial law including company law. In consultation with the Fuqaha and Economist members of the council, he should be able to draft such innovating contracts, which will have the sanction of Islami principles and a banking law of the land.

Objectives of Shariah Council: 

  • The functions of the council are to offer views and opinions on matters related to the bank from time to time. The council may require any paper document from the bank and examine the same to see whether it is according to see whether it is according to Islamic principles.
  • The shariah council assists the Board of Directors by advising them on matters related to shariah.
  • The opinion of the majority of members is taken as the opinion of the council provided that the said opinion is supported by at least three Muftis of the council.
  • The council maintains its secretariat and a well-equipped library as the Head Office of the bank where it keeps proper records of all of its proceedings and decisions.
  • The council may whenever it thinks necessary, constitutes a sub committee to help the council.
  • The council elects a chairman and a secretary from amongst them. The chairman will normally preside over the meetings. In his absence the members present elect one of them to preside over the meetings.

The council issues Shariah Certificate in the Annual Report of the bank.

Features of IBBL:

The bank is committed to run all its activities as per Islami Shariah. IBBL through its steady progress and continuous   success has earned the reputation of being one of the leading private sector banks of the country. The distinguishing feature s of IBBL is as follow:

  • All its activities are conducted on interest-free banking system according to Islamic Shariah.
  • Establishment of participatory banking instead of banking on debtor-creditor relationship.
  • Investment is made through different modes permitted under Islami shariah
  • Investment income of the Bank is shared with the Mudaraba depositors according to a ratio to ensure a reasonable fair rate of return on their depositors.
  • Its aims are to introduce a welfare-oriented banking system and also to establish equity and justice in the field of all economic activities.
  • It extends Socio-economic and financial services to the poor, helpless and low-income group of the people for their economic up liftmen particularly in the rural areas.
  • It plays a vital role in human resource development and employment generation particularly for the unemployed youths.
  • It extends co-operation to the poor, the helpless and the low-income group for their economic development.
  • Its aim is to achieve balanced growth and equitable development of the country through diversified investment operations particularly in the priority sectors and in the less developed areas.

Functions of IBBL:

The operation of Islamic Bank Bangladesh limited can be divided into three (3) major categories:

 General Banking: it includes:

a.   Receipts and payment of cash.

b.   Mobilization of deposits

c.   Handling transfer transaction.

d.   Operations of clearing house

e.   Maintenance of accounts with Bangladesh bank and other banks.

f.   Collection of cheques and bills.

g.   Issue and payment of Demand Draft, Telegraphic Transfer and Payment Order.

h.   Executing customers standing instructions.

i.   Maintenance of internal accounts of the bank.

j.   Maintenance of safe deposit lockers.

While doing all the above noted work IBBL issue cheques-book, Deposit account operating form, SS card, Ledgers, Cash book, Deposit account ledgers, preparation statement of accounts, Pass book, Balance of different accounts and calculates profits.

IBBL offers to open the following account to the depositors:

  1. Al-Wadeeah Current Account.
  2. Mudaraba Savings Account.
  3. Mudaraba Term Deposit Account. (3 month / 6 month / 12 month / 36 months term)
  4. Mudaraba Special Notice Account
  5. Mudaraba Hajj Savings Account (1 year to 25 year term)
  6. Mudaraba Special Savings (pension) Account (5 year to 10 year term)
  7. Mudaraba Savings Bond Scheme (5 year & 8 year term)
  8. Mudaraba Foreign Currency Deposit Account.
  9. Mudaraba Monthly Profit Deposit Account.
  10. Mudaraba Moharana Account.

Foreign Exchange Business:

Foreign Exchange Business plays a vital role in providing substantial reveneu in the bank income pool. Like all modern Banks IBBL operates in the area of the foreign Exchange business. IBBL performs the following tasks:

a)      Opening letter of credit on the principle of Mudaraba sale, on the principle of Musharaka sale and under wage earner scheme.

b)      Opening letter of credit (LC) against commission for importing industrial, agricultural and other permissible items under Islamic Shariah and Import policy.

c)      Handling of export/import document.

d)     Financing in import under MPI (Mudaraba Post Import)

e)      Financing to export on profit or loss sharing.

f)       Handling Inward and outward remittance.

Other activities:

The IBBL performs the following task for the welfare of the society:

  • Education scheme for assisting poor scholar student to case and help them to continue their study.
  • Income generating scheme for the unemployed youth of the nation.
  • “Monorom” sale center for marketing homemade garments, handicrafts and other items.
  • Health scheme for fulfillment of health needs of rural people.
  • Humanitarian assistance is being provided to the poor, families affected by river erosion and for marriage of poor girls.
  • Energy relief operations are provided to the people affected by natural calamities.
  • Assistance to mosque for construction, repair and renovation.
  • Islamic bank hospital was established to extend first hand modern and contemporary medical service to the people on non-profit business.

Achievements of IBBL:

IBBL is the pioneer institution for introduction of Islamic Banking in Bangladesh. The success of IBBL has embedded other sponsors at home and abroad to establish Islamic Banking in Bangladesh. Several existing and proposed traditional Banks have also expressed their intention to introduced Islamic Banking. Achievements of IBBL can be given as under:

  The Islamic Banking products, which are offered by IBBL through its 196 branches, located at important centers all over the country and spontaneous acceptance of those products by the people proves the superiority of Islamic Banking.

  IBBL has successfully mobilized deposits for a section of people hither to before do any deposit with interest-based Banks.

  IBBL’s market share of deposit, investment and ancillary business is steadily increasingly.

  IBBL, through still a tiny bank, handles more than 10 of country’s export and import.

  Among the contemporary commercial Banks IBBL’s position is first in respect of mobilization of deposit, deployment of fund and earning profit.

  Investment in industrial sector occupies 25 of IBBL’s investment portfolio. This unique example of industrial finance by a commercial Bank.

  More than 115000 workers are employed in the industrial projects financed by IBBL. IBBL has thus made significant contribution to solving unemployment problem of country.

  IBBL has earned reputation in the country as a corruption free institution.

  IBBL has introduced several other welfare oriented investment schemes, such as small transport investment scheme, household Durable investment scheme, Housing investment scheme etc.

  IBBL launched a rural development scheme for overall development of the rural people.

  At the initiative of IBBL, several universities in Bangladesh have introduced course on Islamic Banking and Finance.

  IBBL has been continuously persuasion the Government to allow formation of more Islamic Insurance Company.

  Under the leadership of IBBL, Bangladesh Association of Banks (BAB) has been formed.

  This is platform to ventilate the standpoints on banking issues of the private sector banks.

  IBBL has taken initiative to form on Association of Islamic Banks in Bangladesh for furtherance of the cause of Islamic Banking.

Key information of Islami Bank Bangladesh Limited at a Glance:

Date of Incorporation                         :                       13th March 1983
Inauguration of 1st Branch                 :                       30th March 1983
(Local Office, Dhaka)

Formal Inauguration                           :                       12th August 1983
Share of Capital

Local Shareholders                             :                       42.12%

Foreign Shareholders              :                       57.88%

Authorized Capital                                    Tk.5, 000.00 million

Paid-up Capital                                          Tk.3, 801.60 million

Deposit                                                      Tk.166, 637.00 million

Investment                                                 Tk.174, 068.00 million

Foreign Exchange Business:                     Tk.287, 919.00 million

Number of Branches                                   186

Number of Shareholders                             20,960

Manpower                                                   8426

Source: Branch Managers’ Conference Book 2008, IBBL.

Key information of Foreign Trade & Remittance under IBW of IBBL

 1.        No. of Division of IBW                                                          : 5

 2.        No. of AD Branches                                                               : 38

 3.        No. of Forwarding Branches                                                  : 67

 4.        No. of Foreign correspondents                                               : 884

 5.        No. of Exchange Houses in operation                                                : 61

 6.        No. of Nostro accounts                                                           : 42

 7.        No. of LC’s handled in 2007                                                  : 32991

 8.        No. of export Bills handled in 2007                                       : 29087

 9.        Import volume 2007 (million Tk.)                                           : 137086

 10.      Export volume 2007 (million Tk.)                                           : 66690

 11.      Remittance volume 2007 (million Tk.)                                   : 84143

 12.      Import growth in 2007                                                            : 42%

 13.      Export growth in 2007                                                            : 30%

 14.      Remittance growth in 2007                                                    : 56%

 15.      Foreign Exchange Business Growth in 2007                          : 43%

 16.      Foreign Exchange income in 2007 (million Tk.)                     : 6445

 17.      Income of IBW in 2007 (Million Taka)                                  : 814

Source: Branch Managers’ Conference Book 2008, IBBL.

               Table-1:  Performance of IBBL as on 31.06.2008                  Fig. in million Taka




Target for


Target growth for 2008

Proportionate target as on June 2008

Achievement up to

June 2008

% of target achieved (prop.)

Achievement up to

June 2007

Growth as on June 2008 over the corresponding period of last year






















Emerging issues & strategies of Foreign Exchange

Introduction to Foreign Exchange

Foreign Exchange means Foreign Currency. If we consider Foreign Exchange as a subject then it means all kinds of transactions related to foreign Currency, as well as currency instruments such as draft, MT, TT, TC, and Payment Order & Foreign Trade. In other words Foreign Exchange deals with Foreign Financial Transactions. Foreign Exchange refers to the process or mechanism by which the currency of one country is converted into the currency of another currency and, thereby, involves the international transfer of money. It is the means of method by which rights to wealth in a country’s currency are converted into rights to wealth in another currency. In banks where we talk Foreign Exchange, we refer to the general mechanism by which a bank converts currency of one country into that of another’s.

Dr. Paul Einzig defines Foreign Exchange as the system or process of converting one national currency into another and of transferring the ownership of money from one country to another.

In the words of Mr. H. E. Evitt, Foreign Exchange is that section of Economic Science which deals with the means and method by which rights to wealth on one country’s currency are converted into rights to wealth in terms of another country’s currency. In terms of Foreign Exchange Regulations Act, 1947 as adapted in Bangladesh, Foreign Exchange means Foreign Currency and include all deposits cr4edits and balances payable in Foreign currency as well as all Foreign currency instruments, such as, Drafts, Travelers Cheques, Bill of Exchange, Hundi, and Promissory Notes payable in any foreign country.

Types of Foreign Exchange

There are three kinds of Foreign Exchange Transactions

  1. Import
  2. Export and
  3. Remittance (Inward and Outward)

Scope of Foreign Exchange

No country is self sufficient in this world. Every one is more or less dependent on another, for goods and services. Say, Bangladesh has cheap manpower whereas Saudi Arabia has cheap Petroleum. So Bangladesh is dependent on Saudi Arabia for petroleum and Saudi Arabia is dependent on Bangladesh for cheap manpower. In this backdrop Bangladesh earns huge remittance of Green Back (US Dollar, EURO, Pound Sterling, Yen, Ringit, Rial etc. to meet up its import payments People of one country is going to another country for education, medical services etc. one country exports agricultural commodities another country exports industrial products. All these transactions needs foreign currency and are closely related to foreign exchange.

Definition of Import

Import may be defined as bringing of visible items to the country from abroad through letter of credit or LCA Form paying foreign Currency to the exporting country.

Import business involves transactions in foreign exchange. By foreign exchange we generally mean foreign currency like US Dollar notes, Great Britain Pound etc. Bank notes or what we commonly call foreign currency notes however, do not play any significant role in settlement of international transactions. The term foreign exchange is used in broader sense as a process of conversion of one currency into another. Foreign Exchange and Foreign Trade is a part of economic science; it deals with the means and method by which rights to wealth in one country’s currency are converted into those of another country.

Foreign Exchange Regulation Act-1947 regulates Foreign Exchange dealings in our country. Under this Act, Bangladesh Bank has published a Book in two volumes as on 30th September 1996 named as “Guidelines for Foreign Exchange Transactions” which governs the import procedures to be followed by the AD branches for import business. Import is also regulated by the Import policy order of the Ministry of commerce and other notices of the CCI&E and the NBR. As such, all of our AD Branches must follow these Guidelines in dealing with import business.

As our Bank is an Islami Bank, we have to abide by the principles of Islamic Shariah; our branches have to follow the internal circulars of the bank in respect of import business and this guidebook. All of our AD Branches are instructed to follow this guidebook at the time of foreign exchange dealings. Any subsequent amendment, modification, addition/ foreign exchange circulars issued by Bangladesh Bank and our Head Office also to be followed by the AD Branches.

Classifications of importers

Goods are being imported for personal use, commercial purpose or industrial use. So there are three kinds of importers such as :

  1. Personal Import (User). They need no registration from CCI&E for import up to a certain amount as per IPO in force.
  2. Commercial Import: – Those who import the goods to sell-out the same to the market directly without any other processing is called commercial importer.
  3. Industrial Consumer: – Those who Import the goods for Industrial Consumption are called Industrial Importer.

Import Trade Control Act and Authorities

a)      Foreign Exchange Regulation Act-1947

b)      Import Export (Control) Act, 1950.

c)      Importer, Exporter, Indentor (Registration) Order-1981

d)     Chief Controller of Imports & Export  (CCI&E)

e)      Bangladesh Bank.

The Main guidelines of Foreign Exchange Operation:

a)      Guidelines for Foreign Exchange Transactions (Published by Bangladesh Bank).

b)      Import Policy Order -IPO (Published by Ministry of Commerce)

c)      Uniform Customs & Practice for Documentary Credits (UCPDC), ICC Publication No. 600.

d)     Uniform Rules for Collection (URC), ICC Publication No. 522

e)      Uniform Rules for Bank-to-Bank Reimbursement (URR), ICC Publication No. 525.

f)       Incoterms-2000.

g)      International Standby Practice- (ISP-98).

h)      International Standard Banking Practice- (ISBP-2008),ICC Publication No.645

i)        EUCP- Supplement to UCP-600 for Electronic Presentation.

j)        Foreign Exchange (FE) Circulars (issued by Bangladesh Bank).

k)      Public Notice issued by CCI & E.

Import Trade Control:

Import of goods into Bangladesh is regulated by the Ministry of Commerce in terms of the Import and Export (Control) Act, 1950; with Import Policy Orders issued biannually, and Public Notices issued from time to time by the office of the Chief Controller of Imports and Exports (CCI&E). The instructions contained in this chapter apply to sales of foreign exchange or transfers to non-resident taka accounts against import of goods into Bangladesh.

Definition of LC

The Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication no. 600 (“UCP”) are rules that apply to any documentary credit (“credit”) (including, to the extent to which they may be applicable, any standby letter of credit) when the text of the credit expressly indicates that it is subject to these rules. They are binding on all parties thereto unless expressly modified or excluded by the credit.

Credit means any arrangement, however named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honor a complying presentation.

Parties to an L/C.:

  1. The Issuing Bank/Importer’s Bank/Applicant’s Bank
  2. Supplier/Beneficiary/Exporter.
  3. The Confirming Bank (if any)
  4. The Advising Bank
  5. Negotiating Bank
  6. Reimbursing Bank
  7. Transferring g bank
  8. Notify party
  9. Active credit policy
  10. Proper mobilization of credit

Types of LC

Though ICC in its UCPDC 600 mentioned only one type of LC that is irrevocable, but in general in world business practice there are several types of LC still exists which are

  1. Irrevocable LC
  2. Add confirmed LC
  3. Clean clause LC
  4. Revolving LC
  5. Transferable LC
  6. Restricted LC
  7. Red clause LC
  8. Green clause LC
  9. Clean Letter of Credit
  10. Straight Documentary Credit
  11. Irrevocable Negotiable Documentary Credit
  12. Stand by Credit
  13. Back to Back LC
  14. Cash LC
  15. Barter LC
  16. LC under commodity Aid Loan, Credit or Grant.

Application for Import by a client:

A valid importer will submit the following paper/documents to his Bank to open    L/C:

  1. L/C Application form duly signed by the importer with adhesive Stamp (the stamp value may increase or decrease as per policy of the Govt.).
  2. Indent/pro forma Invoice.
  3. Insurance Cover Note
  4. LCAF duly filled in & Signed by the importer
  5. Membership Certificate from Chamber of Commerce/Trade Association.
  6. Tax payment declaration
  7. Charge documents such as Musharaka/Murabaha/Bai-Muazzal Agreement
  8. IMP & TM form (Travel & Miscellaneous Form).
  9. IRC, Pass Book, Trade license, Membership Certificate from the Chamber of Commerce or their recognized /affiliated body in case of new customers.
  10. VAT registration Certificate
  11. Export L/C in case of Back to Back L/C

 Sanctioning L/C to a client:

Upon receipt of the application, dealing officer will initiate office note covering the following:

  1. Whether the client has valid limit.
  2. Whether the proposal is within the limit or within the power of Branch incumbent.
  3. The item to be imported is permissible.
  4. Whether Credit Report of the supplier obtained as per instructions of the Guidelines.
  5. Market Report of the goods.
  6. Competitive price of the goods
  7. The indent bears the Indent Registration Certificate (IRC) number & Bangladesh Bank permission of the Indentor.
  8. The indent bears the signature of Agent & Importer.

On being satisfied, Branch will issue a letter of credit on behalf of the importer and send the same to the beneficiary through any of our Correspondent banks.

Definition of Export

By export we generally mean selling of visible and invisible goods and services outside the country against letter of credit, firm contract or Advance payment. Besides, local supplies against Letter of Credit /contract through banking channel are also deemed as export. However the local exports does not need to be reported to Bangladesh Bank in the schedules.

Export Business occupies a very important position in the Balance of Trade and Balance of Payment of the country. Export occupies an important position in the foreign exchange business portfolio of the bank. In handling export business, certain Acts, guidelines, & regulations have to be followed such as the Export Trade Control Regulation Act, Guidelines for Foreign Exchange Transactions published by Bangladesh Bank and Export Policy issued by Ministry of Commerce from time to time. At the same time, as a Shariah based Bank, our export business should comply with the provisions/ principles of Islamic Shariah. If any of the provisions of this guidebook contradicts in any way the government rule or accepted international banking practice in that case the government rule or the international banking practice (ISBP) will reign on this book. Any subsequent not covered in this book must also be followed. If any area of foreign exchange business is not covered in this book in that case the prevailing rules of Bangladesh Bank and international norms have to be followed.

Procedure of opening of Back to Back Letter of Credit against Export LC

Documents to be obtained from the client-

The new client who desires to avail BB L/C facility has to submit following papers/documents to the bank for consideration:

  1. Memorandum of Association in case of Limited Co.
  2. Articles of Association
  3. Certificate of incorporation.
  4. Declaration regarding liability with other Bank/NOC from other Bank.
  5. Detailed credit report under F-167B.
  6. Tax Identification Number (TIN).
  7. Declaration of Assets & liabilities of Directors.
  8. Bonded warehouse license.
  9. Declaration of collateral offered.
  10. List of machinery with value including commercial invoice.
    1. 100% Share certificate of the Company.
    2. Valid fire license.
    3. Registration from EPB.
    4. Membership certificate from BGMEA/BTMA.
    5. Valid Trade license
    6. Resolution of the Company Seeking financial assistance from the Bank and branch and also the person/persons who will operate Bank A/C.
      1. Two Passport size photographs of each Director.
      2. Latest audited income statement & Balance sheet of the Company.
      3. Statement of last three years performance of the company
      4. VAT certificate.

 Chapter- 4

Finding & Analysis of Foreign Exchange Business in Islami Bank Bangladesh Limited

International Banking wing (IBW) 

IBBL deals its Foreign Exchange Business by its 5(Five) Division under International Banking wing (IBW) previously it was named International Division (ID) and 38 Authorized Dealer and 59 Forwarding Branches. The Divisions are

  1. Foreign Trade Operation Division (FTOD)
    1. Foreign Remittance Management Division (FRMD)
    2. Foreign Remittance Services Division(FRSD)
    3. Forex Management Division(FMD)
    4. Forex Treasury Division(FTD)

Foreign Trade Operation Division (FTOD)

Activates of FTOD under its different departments are mentioned below

Foreign Trade Department

Composite Limit proposal (sanction, renewal, enhancement, recasting etc.), Approval of L/Cs, 3rd Bank confirmation, Other case to case proposal, Follow-up, Correspondences with Branches, Central Bank, other Banks, Govt. & other Bodies etc.

Compliance Department

Obtaining Periodic Statements from branches & sending it to the Bangladesh Bank and other concerned authorities/bodies, Bill of entry, FBC, Non-payment & other unsettled issues and compliance of all issues of Bangladesh Bank and other bodies, Performance analysis etc.

Trade Support Department

Providing/Maintaining circulars, Cash Assistance, C&F Agents, Automation, and MIS.

Trade Policy and Planning Department

Sketch Plan/policy, Manpower Development, System Development, Product Development, and Training, Branch visit/Inspection/Vigilance Activities.

 Foreign Remittance Management Division

Major Functions Foreign Remittance Management Division are

  • SWIFT Operations
  • Operating NOSTRO/VOSTRO Account(s)
  • LC advising, confirming, negotiation and reimbursing
  • Credit Line operations (Financing, Overdrawn, Guarantee issue )
  • Cash Letter Services
  • Treasury support
  • LC Re issuance services
  • AML & other regulatory compliance
  • BKE arrangement
  • Supplying Annual Reports & other corporate information
  • Service level agreement
  • MIS on Correspondents

 SWIFT operations by IBW of IBBL                

SWIFT-Society for Worldwide Inter-bank Financial Telecommunication established in 1973 by 239 Banks of 15 European countries with Head Quarter in Belgium – is the industry-owned co-operative supplying secure, standardized messaging services and interface software to nearly 8000 Financial Institutions in 206 countries & territories.

SWIFT provides complete solutions covering every aspect of financial service processing which include – payments & cash management, treasury & derivatives, trade services, securities pre-trade/trade, pre-settlement, clearing & settlement, custody services and reporting.          

Different Category of SWIFT Message

1)                  System Messages.

2)                  Customer Payments & Cheques.

3)                  Treasury Markets -Foreign Exchange, Money Markets & Derivatives

4)                  Collections & Cash Letters

5)                  Securities Market

6)                  Treasury Markets -Precious Metal & Syndications

7)                  Documentary Credits & Guarantee

8)                  Travelers Cheques

9)                  Cash Management & Customer Status

 Benefits of SWIFT

Confidentiality – Information is only disclosed to authorize persons at authorized locations (99.999 % reliability).

Integrity – Information can be relied upon to be complete, accurate and unchanged.

Availability – Information and associated service is accessible and usable when needed.

Accountability – Every individual authorized to use the system is accountable.

Confidentiality and Integrity are ensured by means of security of transmission, delivery and message storage; by validation of messages; and by user-to-user authentications.

SWIFT in Bangladesh

Bangladesh entered into the era of SWIFT Connectivity in 1999 with membership of 35 Banks including Islami Bank Bangladesh Limited in Bangladesh has got membership & connectivity of SWIFT.

In terms of network, message volume & share holding, Islami Bank Bangladesh Limited enjoys number 1 position amongst all users of SWIFT in Bangladesh. Islami Bank Bangladesh Limited is an active participant holding a seat in the Executive Committee of SWIFT User Group in Bangladesh.

Status of Remittance Arrangement

Particulars                                                                                              Number

Drawing in operation                                                                                      61

Operation starting soon                                                                                   7

Agreement signed                                                                                           5

Obtained Bangladesh Bank’s permission                                                       5

Proposal awaiting Bangladesh Bank approval                                                2

Proposal under process for sending to Bangladesh Bank                               15

Arrangement under correspondence                                                               11

Total                                                                                                                105

Source: Branch Managers’ Conference Book 2008, IBBL.

Foreign Remittance Services Division

FRSD Structure

In order to ensure quality disposal of works and overall development of its officials, the 4 (four) departments of Foreign Remittance Services Division have been designed as under:

I. Policy, Planning, Administration and MIS Department,

II. Marketing and Development Department,

III. Instant Cash Department and

IV. Customer Services Department

Major Functions of FRSD are

  • Publication of Wage Earners Service Brochure
  • Payment of Instant Cash
  • Publication materials for mobilization of Remittance
  • New addition of Booklet of Islami Bank’s Service for Bangladeshi Wage Earners
  • Country wise leaflet on Remittance.
  • Sponsoring different events abroad.
  • ExpatriateBankAccountOpeningDayLongCallCenter
  • Distribution of Brochures, leaflets and arrangement of opening accounts at       BMET, BAIRA and such other organization.
  • Gift items for tellers.

At present, FRSD uses the following technologies for foreign remittance delivery services as mentioned above:

  • Use of ebbs for conversion of all the TT messages from abroad
  • Sending to TTS to the branches in Dhaka and outside Dhaka
  • Auto preparation of TTPOs for distribution among the 3rd banks’ beneficiaries in Dhaka.
  • E-mail
  • Telephone/Fax

Functions of Authorized Dealers (AD) Branches of IBBL

AD Branch performs the following FEX related works:

  1. Import
  2. Export
  3. Remittance
  4. Corresponding
  5. Reporting.
  6. Technical
  7. Miscellaneous

Import (Import under Cash L/C):

  1. To Keep particulars of the import oriented clients
  2. To Maintain valid IRC of the importers and renew properly
  3. To obtain necessary sanction limit from concerned authority (Branch/Zone/Head Office)
  4. To check import proposal of the client as per import entitlement of IPO.
  5. To open Letter of Credit (L/C)
  6. To make necessary amendment of LC.
  7. To issue LCAF
  8. To send the triplicate and quadruplicate copy of LCAF to concerned area office of CCI&E timely.
  9. To obtain permission of IBW for giving third Bank’s confirmation (in respect for add confirm L/C)
  10. To collect Credit Report through their correspondence
  11. To Check import documents in the light of UCPDC, ISBP
  12. To Lodge of import documents
  13. To Retire of import document
  14. To Endorse of import document to release the goods from the custom authority.
  15. To maintain up to date data of enlisted C&F Agents as circulated by HO.
  16. To purchase FC Fund from IBW and placement the same to respective Nostro A/C by whom payment is made abroad.
  17. To create MIB (Murabaha Import Bills) investment and MPI in favour of the client where necessary.
  18. To give Reimbursement Authority (RA) / Payment Instruction (PI) to the Reimbursing Bank for effecting payment against claim of the Negotiating Bank.
  19. To reconcile Nostro Account with the respective debit made by the Branch.
  20. To collect Bill of Entry in due time and matching the same with the duplicate copy of IMP form.
  21. To maintain the balance of FC Fund Purchase, FC Fund Held, LC Liabilities, Sundry Deposit (Cash Security/Margin act. L/C)
  22. To maintain the related Books, Ledgers and Files relating to import.


  1. To Issue EXP Form after verification of the particulars of the EXP Form
  2. To Check master Export L/C
  3. To Check Export documents as per requirement of the Export L/C
  4. To purchase / negotiate the export bills or send for collection
  5. To reverse the FBN/FBP A/C after realizing the export proceeds.
  6. To report Bangladesh Bank the duplicate and triplicate copy of EXP Form according to rules.

 Inward Foreign Remittance:

  1. To make payment of FDDs (local currency) direct issued by authorized/enlisted Exchange Houses drown on the Branch after checking full particulars and verifying issuer’s signature.
  2. To make payment of FDDs (Foreign Currency) after collection through IBW.
  3. To make payment of FTTs directly received through SWIFT (MT-103) after confirming the cover credit of IBW’s related Nostro A/C.
  4. To correspond with wage earners through letter, mail and any other means.


 To correspond with Importers, Exporters and Remitters regarding different issues:

  1.  To correspond with Foreign Correspondences (LC Advising Banks, Confirming Banks, Negotiating Banks/Collecting Banks, Reimbursing Banks) through SWIFT.
  2. To correspond with IBW, Head Office, Zonal Office
  3. To correspondence with Bangladesh Bank, CCI&E & Customs.


a.   To report IBW of Daily position of L/C opening and Daily FC Fund position.

  1. To report IBW of weekly transactions by AD, (like-weekly L/C opening& settled, – Projection of Received and payment of FC,-Reporting of Food Grain etc.)
  2. To report monthly transactions: # Monthly Returns to IBW and Bangladesh Bank
  3. To report other monthly statement including commodity wise statement (L/C opening, LC settlement and L/C outstanding)
  4. To report inward foreign remittance related transaction through various form as required by IBW and Bangladesh.

            Technical works:

  1. To operate computer.
  2. To handle SWIFT operations.
  3. To operate E-mail

Source: Branch Managers’ Conference Book, 2008, IBBL.

  Achievement of IBBL Foreign Exchange Business with National context.

Table-2:   Import Business: IBBL Foreign Exchange Business with National context.






% of IBBL in national import











































Source: Branch Managers’ Conference Book, 2008, IBBL.

Table-3:   Export Business: IBBL Foreign Exchange Business with National context.






% of IBBL in national export











































Source: Branch Managers’ Conference Book, 2008, IBBL.

Table-4:   Remittance Business : IBBL Foreign Exchange with National context.






% of IBBL in national remittance











































Source: Branch Managers’ Conference Book, 2008, IBBL.

Tabel-5:   Import Product Mix: Country vs. IBBL        

Million Tk.

Name of Commodity


% of IBBL Import


% of National Import

Contribution of IBBL in National Import

1Capital Machinery & others Machinery






2Textile Fabrics & Accessories for Garments












4 Fertilizer












6Other Iron & Steel Products






7Chemical & Chemical Products






8Edible Oil






























13Pulses(all sorts)






14Petroleum & Petroleum Products






15 Plastic






16 Milk & Dairy Products






17Oil Seeds






18 Spices & Fruits






19Tanning Materials












Source: Branch Managers’ Conference Book, 2008, IBBL.

Table-6:   Export Product Mix: Country vs. IBBL                                                      

Fig. in million Taka


Name of Commodity


% of IBBL Export


% of  National Export

Contribution of IBBL in National Export









Fish & Shrimp







Jute Goods







Raw Jute



























Source: Branch Managers’ Conference Book, 2008, IBBL.

Foreign Trade Business (Import-Export) Vision/Plan of IBBL

The vision is to match the import performance with that of export so as to be able to meet import obligation of the bank from export proceeds only within a span of 5 years. The above graph shows that with an average growth of 30% in import business after the initial year of 2007 and an average growth of 40% in export business and in remittance business an average growth of 39% and to achieve 30% market share in the country will lead the performances to meet in the year 2012.

Chapter- 5

Challenges and Suggestions regarding Foreign Exchange Business of IBBL

Challenges of IBBL in FEX Business

Negative Propagation against Islami Bank Bangladesh Limited

During early months of this year, some newspapers & electronic media published lot of misleading news against IBBL which created confusion among expatriates in sending remittance to our Bank. However, we maintained regular contact with expatriates & well wishers and the situation has improved later on.

Higher Exchange Rate

Due to restriction in funded investment, import business of the Bank has decreased in few months. As such we have to sell huge Foreign Currency (FC) received against Foreign Remittance to Inter Bank Foreign Exchange Market at a lower price. If we could utilize such fund in our own import requirement, we could offer higher rates to Exchange Houses and get more remittance.

Volatile Foreign Exchange Market

Due to frequent ups & down in Foreign Exchange Market of the country, the remittance inflow has been affected substantially. The country as a whole experienced negative growth in remittance prior to Eid-ul-Fitr which is quite unusual in the history of Bangladesh. At a certain time Nationalized Commercial Banks offered more than Tk. 2 per USD to Exchange Houses than the rate prevailed in the Foreign Exchange Market. Such volatibility of the market & behavior of Govt. Banks in offering Exchange rate at loss to the Institution prompted Al Rajhi Bank & other correspondent to route our remittance business & encouraged remitters to send money through illegal channel.

Introduction of New Islamic Banks/Branches

Expatriates general preference to Islamic Banking has been catered by IBBL over the last few years. However, since some new Banks with Islamic Shariah Principles started operation and few traditional Banks opened Islamic Banking Branch, total business of a segment of people are divided among some Banks. Expatriates are sending money through some other Islamic Banks who are offering them higher return on the deposit.

Entering third generation Bank to remittance business

Previously only Nationalized Commercial Banks and a few Private Banks were engaged in handling Foreign Remittance. But at present almost all private Banks even the third/fourth generation Banks with sophisticated technology & marketing strategy are aggressively entering into the remittance market. So IBBL may face stiff competition in the market in the days ahead.

Aggressive Marketing by Some Banks

Some local Private Banks is undertaking vigorous/aggressive marketing, offering lucrative rate on deposit & providing excellent customer services (Phone/tele-banking etc). Though the Branch network & customer base of those banks are not so wide, yet they are able to get media coverage in case of remittance handling as well.

Delay in Full Automation

Due to non automation of all remittance services & logistics supports in some Branches, our customer services have not yet fulfilled the requirement of Exchange Houses. However we are trying to improve the procedure of handling remittance with the help of ICTD

Shariah Issues relating to Foreign Exchange & Foreign Trade

Issues related to IRC:

Import Registration Certificate (IRC) is issued in favor of client. As such, Bank cannot import directly on commercial basis. Bank purchases goods through using client’s IRC and then sell to the client. This is not Shariah compliant. Letter of Authority is to be taken from the respective client.

 Issues related to realizing commission:

Commission realized from client under Murabaha mode is not permissible.

Issues related to signing contract

Sometimes Price of imported goods is paid in different deals as documents are presented in different times. In addition, duties, VAT, landing charges, transportation and other incidental charges are also paid along with the gross price of the goods and these charges incur in different times. In such cases, contract is signed either on L/C opening date or on the date of fund purchase. Since the contract is signed before having the delivery of goods, therefore, this is not shariah compliant.

Issues related to fixing up profit

Profit can be charged only once to any specific goods. As mentioned earlier, in many cases exporter cannot deliver goods at a time.  He has to effect partial shipment. But bank realizes commission and other charges at a time while opening L/C for the full value of goods. Therefore, the cost of goods and related profit fixation is not done on deal to deal basis. According to Shariah, the price of goods under Murabaha must be fixed and specific.

In some cases Shariah violation occurs while charging profit on goods imported under Murabaha. If profit is charged at the time of purchasing FC, then that would be estimated only. Because bank does not know the other landing charges related to the goods. On the other hand, if profit is not imposed before delivery of documents bank may incur huge losses.

Sometimes profit is charged on goods more than once.

Issues related to Investment without goods

Goods may be destroyed while in transit due to natural calamity and for many other reasons. Under such circumstances, Bank creates forced investment and adjusts the liability of exporter through making payment. This sort of investment in not shariah compliant and income against such investment cannot be accounted for.

Failure to have Letter of Authority from client in case of importation under Murabaha is not shariah permissible.

Sometimes L/C agreement is not duly filled up and dated which cause shariah violation.

 Issues related to Export

Forced investment is created against goods of BB L/C (Baim BB Bills) for stock lot of goods. The different aspects of forced investment under Bai Muajjal are appended below:

    • Bai Muajjal against no stock is created while there is no physical existence of goods. Only the liability of client is converted to Bai Muajjal. Since there is no physical existence of goods, in such cases, buying and selling is absent.
    • Forced investment is created against goods shipped and subsequently become distressed cargo.
    • In case of discounting discrepant documents, the discounted amount is transferred to Bai Muajjal without existence of goods.
    • In case of failure to repatriate proceeds timely, bank has to make payment of BB L/Cs creating forced investment.


Bangladesh is not a full Islamized country, all activities are not operating according to the Shariah of Islam. But the IBBL is trying to operate their activities as much as possible. Yet some limitations and problems are arising and that’s why to encapsulate the overall study we need to detect some findings which are present below:

* No Islami money market is available. Easily money transaction is no possible for the interest free banking system. Call rate money is not responded according to Islami Shariah.

* Islamic Banking is a new phenomenon in our country during last two decades. So majority of our people have no proper knowledge about the activities of Islamic Banking as well as its investment mechanism hamper large scope of investment of IBBL.

* Most of the people in our country have a bad impression of IBBL’soperations regarding indirect generation of interest which meaning no difference between investment of IBBL loan / Credit / advance of

Conventional banks for this reason; they are not too much interested to make investment with IBBL.Because of improper insufficient application of Islamic Banking rule in our country. The investment operations of IBBL can’t run smoothly.IBBL, which is committed to avoid interest, can’t invest the permissible part of its statutory liquidity Reserve and short Term liquidity surplus in those securities.

* This Bank can’t invest in all economic sectors, which are prohibited by the law of Islam. Profitable investment portfolio of IBBL requires clear investment knowledge according to Islamic Shariah. But sometimes IBBL can’t invest its assets in proper portfolio due to insufficient and unskilled manpower in these regards .As a result, there is a large amount of money being idle and thus potential profit is not increasing.

* This Bank revalues its investment operations within limited number of investment modes and does not initiate investment modes according to changing |diverse needs of people

* IBBL has no strong promotional activities to increase motivate its presented potential investment client.

* IBBL does not grant investment portfolio for new entrepreneurs new businessmen new companies etc., which ultimately create “Class Banking”.


Foreign exchange business assumes very important position in the business portfolio of any commercial bank. It is not an exception in case of Islami Bank Bangladesh Limited. As a Shariah based Bank, meeting the present day International business need of the customers in a competitive environment has been and is still a challenge for Islami Bank. From the very inception in the early eighties, Islami bank has covered good grounds. And, foreign exchange business has now become one of the most important portfolio of the bank in respect of volume of fund deployed, generation of return for the bank as well as maintaining the high image of the bank at home and abroad.

 In spite of above IBBL faces various challenges form its competitor bank and other managerial aspects which are Negative Propagation against Islami Bank Bangladesh Limited, Higher Exchange Rate, Volatile Foreign Exchange Market, Introduction of New Islamic Banks/Branches, Entering third generation Bank to remittance business, Aggressive Marketing by Some Banks, Delay in Full Automation. Some Shariah Issues relating to Foreign Exchange & Foreign Trade

To meet these challenge IBBL in the early this year initiates some products namely MDB (Musharaka Documentary Bills) and Bai as Sarf with the share of the client against checking of volatility of currency market.  IBBL also should take other measures to face competitor and to be more compliant with shariah aspects and capacity building in respect of professional knowledge & skill at Branch and Head Office level through training & practice.

In the above backdrop, I think IBBL will perform more aptly in spite of some challenges by its own initiatives may remain market leader in foreign exchange business and may be topped by securing 1st position in the 3 aspects like Import, Export and Remittance in Bangladesh as well to achieve its mission to spread the Islamic Banking through out the world economy system.

I also think that there is bright future waiting for the Islami banking in Bangladesh. And IBBL is in a position to go as a catalyst for this development in the banking sector in Bangladesh in the Foreign Exchange Business as Market Leader.



  1. Islami 1. Tasneem Siddiqui, Beyond The Maze, Streamlining Labor Recruitment Process in Bangladesh, Refugee and Migratory Movements Research Unit, University of Dhaka: 2002.
  2. Chowdhury L.R., A Text Book on Foreign Exchange, 2nd edition, Dhaka: 2006.
  3. Mohammad Abdul Mannan, Paper on the Mobilization of Foreign Remittance, Islami Bank Bangladesh Limited, Dhaka: 2002.
  4. Bhuiyan, Ayubur Rahman Half-Yearly Review of Bangladesh Economy (July-December 2005-First Half of FY06), Thoughts on Economics, Vol.16, No.1, pp. 7-35., Dhaka: 2006.
  5. Islami Bank Bangladesh Annual Report 2007,Dhaka: 2008
  6. Brochures of Islami Bank Bangladesh 2007, Dhaka: 2007
  7. Bangladesh Bank, Guidelines for Foreign Exchange Transactions, 31 December 2008, Dhaka:1996.
  8. Branch Managers’ Conference Book 2008, IBBL, Head Office, Dhaka:2008
  9. 9.      Islami Bank 25 Years of Progress, 2007, Dhaka: 2008
  10. IslamiBankBangladeshLimitedWebsite-
  11. Bangladesh Bank Web site
  12. Uniform Customs & Practice for Documentary Credits (UCPDC), ICC Publication No. 600, Paris, France: 2008.
  13. International Standard Banking Practice- ISBP-2008, ICC Publication No.645, Paris, France: 2008.

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