Foreign Exchange Operation of Trust Bank

Main objective of this report is to analysis Foreign Exchange Operation of Trust Bank Limited. Other objectives are find out appropriate picture of foreign exchange trading of Trust Bank Millennium Corporate Branch. Here also discuss overall views of export figure and find out actual inward remittance of Trust Bank. Finally find out actual outward remittance through Trust Bank Limited Millennium Corporate Branch based Foreign Exchange Operation.

 

Objectives of the Study

  • To find out appropriate picture of foreign exchange trading of The Trust Bank Limited Millennium Corporate Branch.
  • The views of import figure of The Trust Bank Limited Millennium Corporate Branch.
  • The views of export figure of The Trust Bank Limited Millennium Corporate Branch.
  • Find out actual inward remittance through The Trust Bank Limited Millennium Corporate Branch.
  • Find out actual outward remittance through The Trust Bank Limited Millennium Corporate Branch.

 

INTRODUCTION

The Trust Bank Limited is a scheduled commercial bank established under the Bank Companies Act, 1991 and incorporated as a Public Limited Company under the Companies Act, 1994 in Bangladesh on 17 June 1999 with the primary objective to carry on all kinds of banking businesses in and outside Bangladesh. The Bank had thirty four (39) branches operating in Bangladesh as of 7TH December 2008. Initially the bank has started its operation in the name of The Trust Bank Limited but on 12 November 2006 it was renamed as The Trust Bank Limited by the Registrar of Joint Stock Companies. The new name of the bank was approved by Bangladesh Bank on 03 December 2006.

MISSION OF THE BANK

The Trust Bank Limiter’s mission is to make banking easy for the customers by implementing one-stop service concept and provide innovative and attractive products & services through technology and qualified human resources. The bank always looks out to benefit the local community through supporting entrepreneurship, social responsibility and economic development of the country.

VISION OF THE BANK

The vision of  The Trust Bank Limited is to provide financial services to meet customer expectations so that customers can feel the bank is always there when they need, and can refer the bank to their friends with confidence. The Bank wants to be a preferred bank of choice with a distinctive identity.

  • To establish and maintain the modern banking techniques, to ensure the soundness and development of the financial system 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 stability of financial system.
  • Try to encourage savings in the form of direct investment
  • Try to encourage investment particularly in projects, which are more likely to lead to higher employment.
  • To establish participatory banking instead of banking on debtor creditor relationship.
  • To pay a vital role in human development and employment generation.

OBJECTIVES OF THE BANK

The objectives of The Trust Bank Limited are given below:

  • To provide efficient computerized banking system
  • To enhance foreign exchange operations
  • To accept deposits on profit-loss sharing basis.
  • To establish a welfare-oriented banking system.
  • To play a vital role in human development and employment generation.
  • To establish participatory banking instead of banking on debtor-creditor relationship.

PERFORMANCE OF THE BANK

The Trust Bank Limited (TBL), a private commercial bank sponsored by the Bangladesh Army Welfare Trust, started its operations in November 29, 1999.The authorized capital of the bank is Tk. 1000 million. The Army Welfare Trust (AWT) is the major shareholder bearing 51% share.

The bank’s net profit after tax at the year 2007 was 239.03 million which was 2006 was 263.16. The above the bank’s earning per share (EPS) was Tk 52.54 and Tk 24.28during year 2007 and year 2006 respectively reflecting an increase of 160% over the previous year.

Achievement Against Business Plan

(In million taka)

ParticularsBudgetAchievement% of Achievement
Deposit2250027102120
Loan and advances16500186852113
Import-local36214405122
Import-foreign1359217683130
Export-local28404114145
Export-foreign33744225125
Remittance-local1297517535135
Remittance-foreign11022612318
Guarantee8891114125
Operating profit700854122

 

Deposits:

The bank’s deposit fund is entirely contributed by customer deposits, which was Tk. 27102 million,   Tk 18,985.95 million and Tk 12,704.90 million during year 2007 , year 2006 and year 2005 respectively with an increase by 49.44%. Total deposits of TBL are comprised of mostly 75.49% term deposit, 7.67% saving banks deposits and 16.84% current and other deposit during year 200. The weighted average cost of fund stood at Tk. 9.55% and Tk. 10.37% during year 2007 and year 2008 respectively. The cost of fund increased by 8.59% making interest bearing asset costlier to bank which will reduce interest income of the Bank. The Bank is heavily dependent on term deposit which may influence the raising of the funding cost in future.

Loan & Advances:

TBL’s non-performing loan (NPL) has increased to Tk 18,642 million as on December 31, 2007 from Tk 13,188 million at 2006. Although the gross NPL ratio (1.32%) of the bank was same during the year 2007 as 2006, but it was below the peer average of 2.90% during the year 2007. The net NPL ratio of the bank increased slightly at 0.66% during 2006 from 0.61% during 2007 which was also fairly below the peer average of 1.19% at 2007. During 2007 the bank’s total NPL composed of 51.14% substandard loans, 1.96% doubtful loans and 46.90% bad/loss loans. The gross NPL coverage ratio of the bank was 143.74% and 152.78% during the year 2007 and 2006 respectively which was above peer average of 130.8% at 2007 but below the peer average at 2006 which was 159.25%.

 

Funding structure:

As on 31st December 2007 the total assets of TBL was mostly created through deposit collection (89.57%) and the rest of the volume was financed by borrowings (2.01%), other liabilities (2.70%) and stockholders equity (5.73%).

Branch Network:

The Branch network of The Trust Bank Limited is quite strong. With an age of only seven years the bank is now having a network of 39 branches across Bangladesh as on 31 December, 2009. These branches are situated at various strategically important commercial and industrial locations in the country. Among these branches,  branches are in Dhaka,  branches in Chittagong,  branches in Sylhet,  branch in Sirajgonj and  branch each at the cantonment areas of Chittagong, Sylhet, Comilla, Bogra, Rangpur, Jessore, Momenshahi,

Savar, Ghatail. The above branch network is expected to be sufficient to maintain required growth rate of the bank.

 SWIFT services:

  • Quick transmittal of documentary credit and other financial messages
  • Improve automation
  • Transfer the fund instantly
  • Quick remittance

Ready Cash Card System:

The Trust Bank Limited has been operating a Ready Cash Card System which is called Trust Card. By using this card the customers are able to deposit / withdraw money from any branch of our bank as also from some selected branches of Janata bank. The card holders can pay telephone, water, and electricity and gas bills and use it to make purchases from 300 selected retail shops. The Trust Bank Limited is also actively considering introduction of credit cards in collaboration with one of the international card companies.

 

Product & Services:

The Trust Bank Limited has been established with the objective of providing efficient and innovative banking services to the people of all sections of the society. Towards this end TBL offers full range of normal banking services that include deposit banking, loans and advances, export, import, inward worker remittances etc. Deposit Schemes include Trust Smart Saver Scheme (TSS), Trust Money Double Scheme (TMDS), Trust Money Making Scheme (TMMS), Trust Edu-care Scheme (TES), Monthly Benefit Deposit Scheme (MBDS), Lakho Pati Saving Scheme (LSS), Interest First Fixed Deposit Scheme (IFFDS), Retail Loan Products (General) include Car Loan, Doctor Loan, Education Loan, Travel Loan, Hospitalization Loan, Any Purpose Loan, Apon Nibash Loan, CNG Conversion Loan, Marriage Loan, Advance Against Salary Loan, and Retail Loan Products (Defense) include HBL (Regd. Mortgage) , HBL (Commutation Benefits), OD (against salary), Marriage Loans, RRDH(micro credit), Car Loans, House Hold Durable Loans, Doctor’s Loan, Any Purpose Loans, Education Loans and CNG conversion Loans. The Bank also provides international trade related services as Private Foreign Currency Accounts, Non-resident and Resident Foreign Currency Deposit

Accounts, Travelers’ Endorsement (Cash and Travelers Cheque), Remittance of Foreign Currency, Import and Export Transaction, Foreign Exchange Dealings, Purchase of Foreign Currency Drafts, Cheques, Travelers Cheques, Wage Earner’s Development Bond etc. Other services of TBL include Trust Locker Service and Trust Tele Banking. The bank is committed to ensure customized, qualitative and hassle free services in its banking operations along with the focus to broaden the clientele base.

 

DISCUSSIONS OF THE TROPICS

Every bank serves the people by the three sections, General Banking, Credit and Foreign Exchange. I am discussing here foreign exchange sectors in The Trust Bank Limited at Millennium Corporate Branch.

MEANING OF FOREIGN EXCHANGE

Foreign Exchange means as the system or process of converting on national currency in to another national currency and of transfer money from one country into another. This is a part of economic & Science. This is a big deal divided into different currencies instrument such as Draft, Traveler Cheque, Bill of Exchange business including sell, purchasing of currency notes & TC etc. Currency Exchange means the conversion of one Currency into another. The Trust Bank Limited’s foreign exchange activities are divided in to three parts: The bank has established correspondent relationship with several foreign correspondents all over the world viz. Citibank N.A.,USA; HSBC,USA; Union De Banques of HKG, Mashreq Bank psc, USA, Citibank N.A.,UK; Standard Chartered Bank,UK; HSBC,PLC; Citibank N.A.,UK; Standard Chartered Bank,UK; HSBC, PLC; Standard Chartered Bank, Japan; AB Bank, Mumbai, India; HSBC, Mumbai, India; Citibank N.A., Mumbai, India; ICICI Bank Ltd.; HSBC, Pakistan; Habib Bank, Zurich to cater to the needs of the bank’s customers engaged in international trade. TBL is maintaining adequate number of Nostro accounts in important currencies of the world to facilitate payments and transfer of funds. The Bank is providing excellent services to the clientele in foreign exchange and foreign trade operations through the above foreign correspondents.

Foreign exchange is mainly combination of three parts. Those are given below:

  1. Remittance
  2. Export
  3. Import

These three parts are most essential parts of Foreign Exchange Operations of The Trust Bank Limited at Millennium Corporate Branch. Not only The Trust Bank Limited but also all banks of Bangladesh have maintained these rules for foreign exchange operations.

FOREIGN EXCHANGE MARKET

Foreign Exchange market means the places where foreign currency is bought & sold. In this more that supply, currency value. Alternately following are the features of foreign exchange market:

  • Bank & client.
  • Different Banks in the same foreign exchange market.
  • Different Bank & Schedule Bank of the same country.
  • Different Control Bank.

The Trust Bank Limited follows the following the two craters in respect & payment of foreign exchange:

  • Local currency market value &
  • Foreign currency market value.

EURO DOLLAR, PETRO DOLLAR, ASIAN DOLLAR

EURO Dollar is virtually no paper dollar, but mark in dollars; it’s a new name in the currency market in the world Similarly PETRO Dollar means the Dollar earn from sale of fuel. Particularly oil based middle-east countries. Thirdly ASIAN Dollar means the dollar of Singapore, Hong Kong, Tokyo, Bahrain etc-ASIAN Dollar move or less control EURO & PETRO dollars. The bank can buy or sale foreign currency from the foreign exchange market for profit. This bank posses license from Bangladesh bank to deal foreign currency business in the currency exchange market in the world. The Trust Bank Limited maintains overseas inter A/C, with different a Banks in different countries. In the world for network system for Import, Export & Remittance purpose foreign exchange currency may be created a commodity for which the bank can sell or purchase the same to the party or other bank with some profit (exchange).

EXCHANGE IS BEING CONTROLLED

Exchange is being controlled by the following ways:

  • To stabilize the rate of exchange
  • To protect domestic industries
  • For proper implementation of plans
  • To increase the bargaining strength
  • To check over invoicing & Under invoicing
  • To check the Blank marketing and smuggling
  • For regulating the international movements of goods

AUTHORIZED DEALER BRANCH

Bangladesh Bank in exercise of the power under section 3 of Foreign Exchange regulation Act. 1947 issues a license to schedule Bank where they have adequate trained Officer/Staff to deal in Foreign Exchange. The banks that are authorized to deal in foreign exchange are called authorized dealers.

ARBITRAGE OF FOREIGN EXCHANGE

Arbitrage can be defined as simultaneous buying and selling of foreign currencies for the purposes of making profit Arbitrage is carried out mostly by banks, they keep constant watch over the latest development in the financial market of the world.

FOREIGN EXCHANGE REGULATION ITEMS

Foreign exchange regulation items are given below:

  • Bangladesh Bank Manual.
  • Foreign Exchange Circular.
  • Public Notice
  • Import & Export Policy Gazette
  • Ministry of Commerce Circular
  • BCD circular.
  • Guide lines for foreign exchange regulation.
  • Other authorization (i.e. NBC Dept)

MULTIPLE EXCHANGE RATES

Various rate quoted for one currency purchase and sale. Our country rate is multiple exchange rates. The rates of exchanges are the price of one currency in relation to others. Rates are three types.

  1. Currency rate
  2. Pense rate
  3. Cross rate.

Currency Rate: (Indirect Quotation):

Buy high sell low i.e. local currency fixed and foreign currency variable e.g. India & London quoted this rate. In case of currency rates:

  • Buy high
  • Sell low
  • Fore Buying in currency rate higher discount is added and lower premium is deducted.
  • For selling lower discount is added and higher premium is deducted.

Local currency fixed and foreign currency variable i.e. by & sell high. New York money market quoted this rate.

Pense Rate:

Foreign currency fixed and local currency variable i.e. buy low & sell high. New York money market quoted this rate.

Cross Rate:

One currency rate to another.

There are two ways quotation in exchange rate i.e. (a) Buying Rate & (b) Selling Rate

Others Rate:

There are also other rates. Those are given below:

TT (Telegraphic Transfer) & OD (on demand) rate:

TT & OD rate should be applied for foreigners & Govt. people i.e. other than import. BC (Bills for Collection) Selling Rate: This rate should be applied for Import Bills only.

IT Clean Rate:

This rate should be applied for other that foreigners i.e. the A/C holders and for purchasing Cheque, Draft, TT, MT, P.O, TT. Clean rate also will get foreign currency Account holder and purchasing of foreign currency note.    

Sight Expert:

When we will purchase the export document in that case rate will apply O.D sight export

O.D Transfer Rate:

This rate should be applied for official people & foreign only. Cheque, Drafts, MT, TT. P.O- Coupons etc. will be purchased applying OD Transfer rate.

 

Determination of Exchange Rate:

The following chart shows the determination of various operational exchange rates (both buying & selling) of an authorized dealer (Bank) in Bangladesh.

EXCHANGE RATE RULES:

There are different types of exchange rate rules. Those are given below:

In case of Pense Rate:

  1. Buying low
  2. Selling High

In case of currency rate:

  1. Buy High
  2. Sell Low

for Buying:

  1. In currency rate higher discount is added and lower premium is deducted.
  2. In pense rate higher discount is deducted and lower premium is added.

for Selling:

i) In currency rate low discount is added and higher premium is deduced.

ii) In Pense rate lower discount is deducted and higher premium is added.

 

Basket of currency in our Country:

  1. US Dollar
  2. Pound Starling
  3. DM
  4. Yen
  5. France Frank.

METHODS OF EFFECTING PAYMENT OF THE TRUST BANK LIMITED.

The Trust Bank Limited follows the following methods to make payments between countries.

Telegraphic Transfer (TT):

This is an instruction for transfer of money by Telegram, Cable or telex from a bank in one country to another Bank in different center. This is an instruction form the Importers Bank to the exporters Bank. The TT charge is realized by us from the partly as per Bank circular

Mail Transfer (M.T):

This transfer is the order to pay cash to a 3rd party. This Transfer is sent by mail & the charge must be realized as per Bank circular.

Drafts & Cheque:

A draft is pay order issued by one Bank to another Bank or its branch.

MEANING OF REMITTANCE

The word Remittance originates from the word remit which means to transmit money/ fund. In banking terminology, the word remittance means transfer of fund from one place to another place. When money transferred from one country to another is called Foreign Remittance

TYPES OF REMITTANCE

Foreign remittance may be classified in to

  • Inward Foreign Remittance.
  • Outward Foreign Remittance.

Inward Foreign Remittance:

 Inward Foreign Remittance means Remittance received from foreign countries from abroad. In other words remittance coming into our country from other countries by the remitter by way of permissible banking channel through freely convertible Foreign Currencies is called ‘Inward Foreign Remittance’ i.e. payless point of view it is inward foreign remittance. On the other hand remitter’s point of view it is called outward Foreign Remittance. During The year 1995-1996 Bangladesh received and amount of US$ 1217.062 Mil as Foreign remittance.

Outward Remittance:

 Outward remittance of funds be made by means of T.T. D.D. T.T. etc. the remitter has to deposit money along with the application contains name and address of the payee name of the currency etc. All outward remittances must cover the transactions approved by the Bangladesh Bank.

DIRECT/ INDIRECT REMITTER

There are different types of direct/ indirect remitter. They are given below:

Wage Earners:

Bangladeshi nationals working abroad both in private sector & in Govt. Sector.

Indenture:

Indenting commission & Agency commission received from suppliers from abroad. Bangladeshi Nationals working in Bangladesh Embassy abroad.

Foreign Govt./ Govt. organization (UNO & others) who have their own activities in Bangladesh say business, Embassy etc. can also remit to Bangladesh for meting their expenses, salary etc.

Donors:

Foreign Donors can only remit to Bangladesh through the Govt. Register Organization & institution etc.

Exporters:

Export proceeds also remitted to Bangladesh against exporting of goods.

MECHANISM OF REMITTANCE

The mechanisms of remittance are given below:

  • FCAD- Foreign currency A/C Dollar.
  • FCAP- Foreign currency A/C Dollar.
  • PFC- Private foreign currency.
  • FCAD- Exp. – Foreign currency A/C dollar export.
  • NRO- Non residence dollar.
  • NRT- No residence Taka.

INSTRUMENTS OF FOREIGN REMITTANCES

  • Cash for : Dollar, Pound, France Riyal or any other currency.
  • C. : Travelers Cheque.
  • D.D : Foreign Demand Draft.
  • T : Telegraphic Transfer, Cable transfer or swift transfer.
  • T : Mail Transfer.
  • MO : International Money Order.
  • Cheque             : By any person & institution.

PROCEDURE OF OPENING F.C. A/C.’S

Any Bangladeshi National or any person of Bangladesh Origin who are serving and working abroad (outside Bangladesh) and whose incomes are not derived from Bangladesh sources are called wage Earners. Following formalities to be obtained before opening a F.C A/c.

Opening Form fill up:

Account opening form prescribed for Foreign Currency account should be properly filled in.

Signature verity:

The signature of the account holder on the account opening form and specimen signature card must be verified with the signature recorded in the passport.

Nominees’ signatures verify:

The Signature of the nominee, if the account holder desires to authorize to operate the account in absence of him, nominee’s signature must be varied by the account holder.

Photo:

Photograph of the nominee and account holder must be obtained.

REQUIRED DOCUMENTS FOR DIFFERENT TYPES OF REMITTANCE

There are different types of required documents for remittance. They are given below:

  • Declaration form signed by the remitted for getting the WES benefit.
  • ‘C’ Form to be filled in regarding purpose of remittance is required by the remittance from the remitter (for remitting exceeding US$ 20,000/-)
  • For export-EXP Form duly signed by exporter & other ERC, Invoice, AWB/BL & other documents.
  • Indenting commission-Photo copy of valid RC turn over/VAT, Tax Registration certificate form must be submitted. Copy of previous month (paid VAT/Tax treasure challan also)
  • Donation-NGO Bureau’s permission & NGO registration Certificate to be obtained.
  • If the remittance in the Form of Cash/TC is more than US$ 5,000/- then the same to be declared in the Form of FMJ supplied by the custom Authority which is required to produce the bank at the time of encasement.

 

ACCOUNTING PROCEDURE ON FOREIGN EXCHANGE TRANSACTION (INWARD REMITTANCE)

Accounting procedure on foreign exchange transactions are given below:

For T.T. 1st verifies the test Number any entry in the T.T payment register:

  • IBG A/c. D.D.ID.
  • F.C. Deposit (W.F.H) A/c. (at National rate)
  • WES Fund purchase A/c. Tk. @ T.T. Clean
  • Party’s A/c.
  • Commission A/c.
  • Govt. Tax A/c. (If the remittance relates with indenting commission 5% & 15% Vat to be deducted).

If the party deposit draft to the bank for collection of the proceeds. In that case the following voucher should be passed:

  • Outward foreign bills lodged A/C.
  • Outward foreign bills for collecting.
  • Outward foreign bill for collecting.
  • outward foreign bill lodged A/C.
  • IBG A/C. H.O.ID (at notional Rate)>
  • Commission A/C.
  • W.F. purchase @ T.T. clean rate.

When a Taka draft presented for payment those who are maintain NRD & Account with us:

  • IB General A/c. L.O. (Mentioning related NRT A/c)
  • Party’s A/c.

 

STATEMENT AND RETURN OF FOREIGN EXCHANGE DEPARTMENT

The statement and return of foreign exchange department are given below:

  • Daily Statement of the L/C opening position and foreign currency position.
  • Weekly statement for onion, Garlic & spices etc.
  • Fortnightly statement of IRC renewal to CCI&E.
  • Fortnightly statement of LCAF copy to CCI&E.
  • Performance report of foreign Exchange Business.
  • Statement of FBN (Regular).
  • Statement of Foreign Exchange Income Analysis.
  • Statement of Outstanding Export Bills.
  • Statement of Commodity wise.
  • Statement of outstanding commitment.
  • Statement of WES-7.
  • Statement of Inward Remittance.
  • Statement of Bangladesh Bank Return.
  • Statement of Customer liability.
  • BCD Circular-31 statement.
  • Statement of AID, Loan, Grant for L/C.

MEANING OF EXPORT

Export means lawful carrying out of anything from one country to another country for sale. Export business handled by The Trust Bank Limited during 2003 stood at Tk. 2807 million, showing a growth of 41.17 percent from Tk. 1988.4 million during 2002. In 2005 which exports are happened by The Trust Bank Limited at Millennium Corporate Branch, those are given below.

Table: Export Performance Form January’2007 to June’2007 at Millennium Corporate Branch

MonthAmount in US $Amount in BD Taka
January2,46,0001,70,06,000
February8,18,4135,09,93,018
March1,43,17497,84,980
April74,14440,35,600
May68,28646,77,623
June2,89,0871,97,44,696
Total15,64,96014,25,62,317


DEFINITION OF EXPORTER

The importers and exports trade of the country is regulated by the Imports Exports Control Act 1950. No person /firm is allowed to export any thing from Bangladesh unless he is registered with CCI and E under the registration order (Importer and Exporter) 1952. To become an exporter an ERC (export Registration Certificate) must be obtained from the office of CCI & E.

PROCEDURE FOR OBTAINING EXPORT REGISTRATION CERTIFICATE (ERC)

For obtaining Export Registration Certificate (ERC), intending Bangladesh Exporters are required to apply to the CCI & E authority in the prescribed from along with the following documents:

  • Nationality Certificate.
  • Copy of valid Trade License.
  • Income Tax Certificate.
  • Bank Certificate
  • Copy of rent receipt of the business firm.Registered Partnership Deed in case of partnership concerns.
  • Memorandum of Articles & Association and Incorporation certificate in

On satisfaction of the CCI & E the potential exporter is advised to deposit export registration fee of Tk. 1,000/- through Treasury Chalan to Bangladesh Bank/ Sonali Bank for enabling them to issue ERC. The ERC may be renewed every year on payment of renewal fee of Tk. 1,000/- through Treasury Chalan as started.

DIFFERENT TYPES OF EXPORT

There are three types of export. Those are given below:

  • Export under L/C
  • Consignment basis export
  • Export against advancement payment

Export under L/C:

Exporters are allowed to export the commodity under irrevocable letter of credit. Under this type of export, exporter will ship the goods as pr terms of the credit and will get payment as per arrangement of the credit.

Consignment basis export:

Exports are allowed against firm contract. As per contract, importer will ship the goods and the buyer will make payment after selling the consignment.

Export against advancement payment:

 Sometimes exporter receives payment in advance. In that case Authorized Dealer should obtain a declaration from the exporter on the Advance receipt voucher certifying the purpose of the remittance. Then the exporter will export the goods against the advance payment.

 

STAGES & MECHANISM OF EXPORT

There are some stages & mechanism of export. Those are given below:

  • Exporter will make the goods ready for shipment.
  • Arrangements have to be taken for inspection of the goods by the competent authority as per credit terms.
  • Exporter will declare on EXP form against export L/C/Firm Contract/ Advance payment.
  • Exporter have to arrange approval for export from custom authority on EXP from by submitting export L/C, Export permission from CCI & E, Quota clearance from EPB, U.D. in case of garments, invoice, packing list along with shipping bill prepared by C&F agent.
  • After completion of custom formalities, shipping company will receive the goods and will issue B.L.
  • Exporter will collect visa/ license and certificate of origin for final documentation.
  • Exporter will submit the full set of documents to the negotiating bank for negotiation.
  • Negotiation bank will dispatch the documents to the issuing bank for clearance of the goods from destination against payment as per credit terms.

EXPORT DOCUMENTS CHECKING

After submissions of export documents by the exporter, The Trust Bank Limited must check, whether the entire required document submitted or not. The Trust Bank Limited must examine all documents stipulated in the credit with reasonable care to ascertain whether or not they appear, on their face to be in compliance with the terms and conditions of the credit. Documents not stipulated in the credit will not be examined by The Trust Bank Limited. To examine documents The Trust Bank Limited must follow the L.C terms and international standard banking practice. Automated or computerized carbon copies to be treated as original documents if it is marked ‘original’ Copy documents need not be signed. Multiple documents means one original and remaining copies, Signature, Mark, Stamp or label is sufficient for authentication of document. The Trust Bank Limited will accept a prohibited in the L/C.

Some common discrepancies in Export Documents:

  • Late shipment.
  • Late presentation.
  • Part shipment effected.
  • Consignee/Notify party differs.
  • CR presented instead of B/L.
  • House Airway Bill presented instead of AWB
  • B/L shows  freight collect instead of freight prepaid
  • Shopped on Board not marked on the B/L
  • B/L is clauses
  • Description of the goods differs
  • Unit price differs
  • Pre-shipment inspection certificate absent

EXPORT FINANCING:

To meet up the cost of the goods to be exported, the exporter, the exporter may require Bank finance. Besides, he may require finance for go down rent, freight etc. Event after shipment of the goods, exporter may require Bank finance to meet-up his current expenditure up to repatriation of the export proceeds. There are two types of export finance:

  • Pre-shipment finance.
  • Post shipment finance.

Pre-shipment finance:

Pre-shipment investment is finance, allowed by a Bank to an exporter, to meet the cost up to the shipment of the goods t overseas buyer. The purpose of the investment is to purchase raw materials or finished goods or manufacturing processing, packing and transporting the goods.

Post shipment finance:

There is a time gap between export of the goods and realization of the proceeds. So exporter may require finance in that period to continue his business. So Bank may finance against export documents ensuring the following:

  • Export documents comply the credit terms.
  • Buyer is bona-fide.
  • Party’s past performance is satisfactory.
  • Any other security in case of export under contract.

SECURITY OF PRE-SHIPMENT INVESTMENT

Security of pre-shipment investment is given below:

  • The Trust Bank Limited will mark loin on the related export L/C.
  • The Trust Bank Limited will finance against a L/C having sufficient time to procure the goods for export.
  • Finance to be done after arrival of the imported raw materials under back-to-back L/C.
  • The Trust Bank Limited will supervise the production from time to time to ensure export of the goods in time.
  • If finance is applied for a particular purpose The Trust Bank Limited will ensure the proper use of the money for the purpose only.
  • Change documents to be signed by the exporter before disbursement of the PSI.
  • In case of Quota finance, Quota allocation letters to be kept lien with The Trust Bank Limited.
  • The Trust Bank Limited will adjust the liability proportionately from related export documents.

 EXPORT REQUIREMENT

All export from Bangladesh must be declared by the shipper on EXP form to The Trust Bank Limited enabling them to submit the duplicate within 14 days from the date of shipment. The shipper is required to repatriate the export proceeds within 4 months from the date of shipment otherwise penalty is imposed upon them. A careful watch is to be dept to ensure that the sale proceeds are received on due date. A due date diary must be maintained to pursue the individual case.

SHIPPING & CUSTOMS FORMALITIES

International transfer of goods are made through the Letter of Credit which issued by the foreign bank at he request of Importers in favor of exporter. Such Export L/Cs is enrooted through the Bangladeshi Banks by the foreign banks who have correspondent relationship.

The foreign issuing banks may advise a credit in the following manner:

  • By short cable/ Telex followed by Airmail.
  • By full telex (No airmail confirmation).
  • Airmail L/C.
  • Advising of L/C after adding confirmation.

INSPECTION OF GOODS

The goods should be kept ready for inspection of the competent authorities and issue a certificate of quality control required under regulation: for example:

  • Export promotion Bureau.
  • Custom Authorities who will inspect the goods under Sea Customs Act.
  • Chamber of Commerce and Industry.
  • Other agencies authorized to inspect the goods before shipment.

MATE’S RECEIPT

When gods are hand over to the against of the shipping company for shipment and he issued a receipt known as mate’s receipt signed by the master of the ship when the goods are actually shipped the mate’s receipt is exchange for the regular B/L. The bank is to forward the following shipping papers to the C & F agent under their forwarding schedule:

  • One copy of invoice prepared by the shipper.
  • One copy of shipping instruction to be prepared by the shipper complying the terms of relevant L/C or contract so that the B/L is made out in the name of an Authorized Dealer strictly in terms of L/C and become free from all defects. The resultant B/L (Original) must be sent to the bank along with other relevant paper. On receipt of the original B/L, the bank will ask the exporter to submit the relevant papers for negotiation and documentation.

Send Shipping Advice:

 On shipment of goods and receipt of Bill of Lading and other documents from the clearing and forwarding agents send a shipping advice to the importer abroad so that the latter may stand making arrangement for taking delivery of the consignment.

Shipping Requirement of an Exporter in the context of Export:

Every exporter under foes certain sequential formalities when he takes up the venture of exporting goods.

First of all the exporter comes into contact with the buyer and negotiate the commodity contract, while negotiating the commodity contract and exporter takes into consideration three resects:

  • Cost of the commodity i.e. CFR, CIF or FOB
  • Freight component.

REQUIRED DOCUMENTS /PAPERS OF LC STIPULATION

There are different documents and papers of stipulation are given below:

  • Commercial Invoice.
  • Certificate of origin.
  • Negotiable bill of lading.
  • Pre-shipment inspection certificate.
  • Quantity & quality certificate.
  • Fumigation certificate depending o the nature of cargo.
  • Gross revenue proceeds (GFP), export price check (EPC)/ Incase of jute shipment etc.

All the above documents prepared by the exporters are an essential Prerequisite for shipment of export to various countries. In completion of documentary formalities cargo is firmly booked by the shippers. The shipping documentary formalities cargo is firmly booked by the shippers. The shipping agents issue shipping order. The shippers/C&F agent then forward the shipping order along with shipping bill to customs authorities. Customs authorities check up the shipping bills/ in voices/ packing list/ shipment order. GRP/EPC Pre-shipment inspection certificate etc. When they are satisfied with export documents and find jetty and charges have been pad by the shippers, they pass the shipping bill and order for shipment. The export cargo is then weighed by the LMD and shipment is effected in the presence of preventive officer. Immediately when the cargo has been lifted on board on the basis of LMD. Mate receipts are issued by the master/chief officer of ship, and finally bills of lading are prepared on the basis of each mate receipt which is an acknowledgement of receipt by ship owners against shipment of cargo on board.

 

NEGOTIATION OF EXPORT DOCUMENT

If the export document complies the credit terms The Trust Bank Limited may negotiate the Document. Negotiation means the giving of value for Draft and/or documents by the Bank authorized to negotiate. For negotiation, The Trust Bank Limited will issue and office note taking decisions of purchase the documents and disbursement of fund. If it is decided to purchase the document then it to be recorded in the FBP register putting a serial number for the documents and the following voucher to be passed.

  • FBN A/C @ OD sight Export Bill.
  • F.C held against BB L/C (79% or as required).
  • Marginal deposit A/C against FBN (2% or as required).
  • Pre-shipment finance.
  • Investment income A/C (PSI).
  • Baim WES Bill A/C (For regular 10% & for overdue A/c 20% of generated found or as required)
  • Hire Purchase A/C (For regular 10% & for overdue A/c 25% of generated found or as required)
  • P&T Recovery A/c
  • Local Agents Commission

It is notable that the above accounting procedure is applicable only for 100% export oriented garments industries. Other wise funds to be credited to party’s current account and other liability accounts, if any. FBN accounts to be adjusted within 21 days by debiting IBG A/c, Ho, and IBW after realization of the export proceeds in NOSTRO A/c.

 

SENDING EXPORT DOCUMENTS ON COLLECTION

If the documents are discrepant exporter’s Bank will send the documents to the Issuing Bank on collection, at the request a risk of the exporter. At the time of sending documents on collection the following voucher to be passed.

  • out-ward foreign bill Lodged A/c
  • out-ward foreign bill for Collection A/c

After realization of the proceeds, above entries to reserve and the following voucher to be passed.

  • IBG A/c HO, IBW @ Mid rate (Bangladesh Bank’s buying rate +TT documentary ¸2)
  • Party’s Current Account
  • Party’s Investment Account
  • Investment Income A/c
  • Income A/c (Commission)
  • P&T A/c
  • Telex charge
  • F.C held against Back to Back L/C

 

EXPORT INCENTIVES

To promote the export business, Government has declared some incentives for exporter. Following are the main incentives as per export policy 1997-2002 declared by the Ministry of Commerce:

  1. Retention Quota: Exports dared allowed to deep 40% of their export proceeds to their F.C A/c. It is 7.5% in case of export against switch import is higher, proportionately.
  2. Investment period: Normally export finance, as working capital is allowed for 180 days. Now it has been extended up to 270 days for frozen foods, tea and leather.
  3. Credit Card: Exporters are allowed to get credit cards for business tour.
  4. Investment Facility: Commercial Banks may finance for export, up to 90% of FOB value of the export L/C.
  5. No compensation: Commercial Banks will not impose compensation on overdue sight export bill under irrevocable export L/C.
  6. Duty Draw Back: Those exporters, who are not available Bonded Warehouse facility, are entitled to get duty draw back facility. They will pay the duty to the custom authority at the time of importing the raw materials and after realization of the export proceeds. They will apply for draw back duty paid earlier Authority will pay back the duty.
  7. Bonded ware House Facility: 100% export oriented industries are allowed to import duty free goods for ultimate export. The goods to be stored at the Bonded Warehouse.
  8. Duty Free Capital Machinery: 100% export oriented industries outside EPZ are also allowed to import capital machinery’s free of duty.
  9. Cash Incentives: Deemed exporters are allowed 25% Cash Incentive by Bangladesh Bank.
  10. Stock Lot Disposal: Rejected Garments & Leather may be sold to local market paying 20% duty on the imported raw materials.
  11. Freight Rebate: Bangladesh Biman charging freight at a reduced rate for fruit & vegetable export.

 

MEANING OF IMPORT

Commence bring in from abroad or to bring something or cause something to be brought in from another country, usually for commercial or industrial purposes. To bring in something, such as knowledge or expertise, from an outside source.  Actually, Import means lawfully carrying out of anything from one country to county for Buying. It will be occurred according to the Government law. The Trust Bank Limited’s foreign exchange business relating to import into Bangladesh expanded markedly by 50.53 percent to Tk. 5645.60 million at the end of December 2003 from Tk. 3750.60 million a year ago. There are different years import happened by The Trust Bank Limited at Millennium Corporate Branch. Those are given below:

In 2007 monthly performance of The Trust Bank Limited.  Millennium Corporate Branch is given below:

Monthly Import Performance of The Trust Bank Limited Millennium Corp. Branch ( March’07 to December’07 )

MONTHBTB(L) L/CAMOUNT IN US $AMOUNT IN BDT
MarchNIL3,20,4852,22,43,736
AprilNIL84,0005822586
MayNIL23528616387860
OctoberNIL3092517812139
NovemberNIL15581549141
DecemberNIL124329586160797
TOTALNIL1929572148976259

 

Monthly Import Performance of The Trust Bank Limited Millennium Corp. Branch (January’07 to May’07 )

MONTHBTB(L) L/CAMOUNT IN US $AMOUNT IN BDT
JanNIL8240571856
FebNIL3730258362
AprNIL8460587124
MayNIL38203528565679
TOTALNIL40246529983021

 

CLASSIFICATION OF IMPORT

There are four types of import. They are given below:

  • Commercial import
  • Industrial import
  • Import under wage earners scheme
  • Actual user

 

 

REGULATION OF IMPORT

  • Control list: Unless otherwise specified items which have been indicated as banned in this list shall no be permissible for import. An items included in this list with specific conditions for import shall be importable only on fulfillment of the conditions specified.
  • Freely Importable Items: Unless otherwise specified an items the name of which does not appear in the control list shall be freely importable.
  • Notwithstanding anything mentioned else where, all imports into Bangladesh shall be subject to such general or specific conditions as many have been prescribed in this order.
  • In addition to the conditions mentioned in the control list the conditions. Restrictions and procedures for import of various items mentioned in the test portion of this order, shall as usual, apply in case of import of those items.
  • If, while determining the import status of an items mentioned in the control list the description of goods does not conform to the H.S.C Code mentioned against item, or any discrepancy arises between the H.S Code and the description of goods, in that case the description of goods shall prevail, In other words, if the import of a particular item is shown as banned in the control list, or is shown as importable as subject to fulfillment of conditions in the list, the said ban or restriction as the case may be, shall equally apply to the import of that item , even if such ban or restriction is mentioned else where and not against the appropriate H.S Code, if any importer, taking , advantage of such discrepancy, import any banned items or restricted items or restricted item without fulfilling the respective conditions, such import shall be treated to have been made as in contravention of the provisions of this order.

IMPORT TRADE CONTROL SCHEDULE NUMBERS

For import purpose, use of new ITC Number (H.C. Code) with at least 6 (Six) digits corresponding to the classification of goods as given in the Import Trade Control Schedule 1988, based on the Harmonized commodity Description & coding system, shall be mandatory, But in case where a particular items has classified under an H.S. Code Number with more than 6 (six) digits, in those cases it shall e mandatory to use that specific code number (having more than six digits.) No bank shall process any LCA Form. Or open any L/C without properly recording the corresponding ITC Number (s) for the item’s to be imported.

RESTRICTION REGARDING SOURCE OF PROCUREMENT OF GOODS           

Goods from south Africa & Israel or goods originating from these two countries shall not be importable goods shall also no be importable in the flag vessel of these two countries.

Import at Competitive Rate:

Import shall be made at the most competitive rate & the importers may be required, at any time, to submit documents regarding the price paid or to be paid by them. This order shall be exempted up to TK. 1.00 (One) Lac fro opening of the L/C.

Pre-shipment Inspection:

Unless otherwise specified reshipment inspection of imported goods shall not be obligatory in case of import by the private sector importers.

Import on CER basis:

All imports by Sea, Air & Land route shall be made on cost and freight basis, Import on free on board basis may be made strictly observing Bangladesh Bank’s Circular, Before opening If L/C necessary insurance cover note should have to be purchased form the insure ace Co. No import shall be allowed on CIF basis without prior approval from the Ministry of Commerce.

Shipment by Bangladesh Flag Vessels:

Shipment of goods shall normally be made on Bangladesh Flag Vessels.

 

IMPORT AUTHORIZATION

Import License not required:

No import License will be necessary import of any item.

Imports against LCA Form:

Unless otherwise specified no import irrespective of the source of finance, shall be allowed exchange through submission of LCA Form, duly filled in, to the concerned nominated bank.

 Import against L/C:

Unless otherwise specified import shall be made only by opening irrevocable L/C.

 

Import against L/CA Form but without Opening:

 Import against LCA Form may be allowed without opening of letter of credit tin the following cases:

a) Import of books, Journals, magazines and periodicals on sight draft or essence bill basis.

b) Import of any permissible item for an amount not exceeding US$ 2500/- only during calendar year against remittance made from Bangladesh at WES rate.

 

DEFERRED PAYMENT

L/C:  may be open under deferred payment basis.

Direct Payment in Abroad:

Only for Bangladeshi National who live in abroad for service. Those who are entitled to purchases the importable goods for direct payment to the beneficiary from his own service without opening any L/C, The goods must be sent to the Bangladesh. Nationals who lived in Bangladesh. In that case no approval is required from CCI & E.

Time Limit Opening of L/C:

Letter of Credit shall be opened by all importers within 120 days from the date of registration of LCAF with the Bangladesh Bank unless otherwise notified.

Validity of LACA for Shipment:

Unless otherwise specified, shipment of goods shall take place within 17 month in the case of machinery and spare parts and 11 months in the case of all other items form the date of issuance of LCA from by Bank or registration of LCA form within Bangladesh Bank registration unit as the case may be.

Document required to be submitted along with LCA Form:

Importers in both public sector and private sector shall submit to their nominated banks the following documents along with the L/C authorization Form for opening letter of credit.

  1. L/C application form duly signed by the importer.
  2. Indent for goods issued by indenture or pro-forma invoice obtained from the foreign supplier, as the case may be and
  3. Insurance cover note.

IMPORT L/C (LETTER OF CREDIT)

A letter of credit is a conditional Bank undertaking of payment. In other words letters of credit is a letter form the importer Bankers to the exporter that the bills if drawn as per terms & conditions complied with will be honored on presentation.

 

Classification of L/C:

Revocable L/C, Irrevocable L/C, Confirmed L/C, Transferable L/C, Divisible L/C, Revolving L/C, Restricted L/C, Red Clause L/C, Green Clause L/C, Bank to Bank L/C, With Recourse, Without Recourse, Stated by letter of credit.

Types of L/Cs:

There are different types of letter of credit. They are given below:

Revocable Credit: As per Article no. 8 (a) a revocable credit is a credit which can be amended or canceled by the issuing bank at any time without prior notification to the seller since to offers little security to the seller.

Irrevocable Credit: As per Article no 9 an irrevocable credit constitutes a definite undertaking of the issuing Bank. A credit cannot be amended or cancelled without the agreement of all parties. It gives the seller grater assurance of payment. An irrevocable credit can be either confirms or unconfirmed dependant on the desire of the seller.

 

CLASSIFICATION OF IMPORTER          

Importers are those who ate authorized by the import Trade authority i.e. & CCI & E for import of goods essential for consumption or for production purposes. There are mainly three types of importers.

  • Commercial Importer
  • Industrial Importer
  • Importers under wage Earner Scheme

Commercial Importer:

It means an importer registered under the importers, exporters and indention registration order 1981 who import goods from sale, when issued to commercial importers, given the category held by him with ITC classification and public notice against which they are admitted into import trade.

Industrial importer:

When issued to an industrial consumer, gives the items of import as raw materials and packing materials and spare parts, the value of entitlement and ITC classification.

Importers under WES:

 It means registration importers who import only under the WES. In this scheme, the foreign exchange required for import of goods is met out of the remittance made by Bangladesh National Earning Wage abroad. WES importers can be importing all permissible items a declared by the importer also can import under WES.

REGISTRATION OF IMPORTER

As per Import & Export control Act. 1950 no person can indent, import or export any goods into Bangladesh except kin case of exemption issued by the Government of the peoples Republic of Bangladesh. Violation of this order is punishable with fine under the provisions of Sea Customs Act 1878 as applied by sub section (3) of Section 3 of this Act.

Procedure for obtaining, IRC (Import Registration Certificate): Through public notice or import policy the chief controller of imports & Exports invites applications usually for registration of importers.

The following papers/ documents are required for submission to CCI & E or area office of CCI & for import registration certificate:

  • Application form.
  • Nationality Certificate.
  • Income Tax registration Certificate with GIR.
  • Trade License from the municipal or local Authority.
  • Membership Certificate.
  • Partnership deed (for partnership firm)
  • Certificate of Registration with the register of joint Stock & Articles and Memorandum of Association in case of Limited Co..
  • Documentary evidence for business existence.
  • Original copy of Treasury Chalan being payment of registration fees.
  • Original copy Chalan for passbook.
  • Ownership’s documents or Rent receipts of the place of Business.

The nominated bank of the application will examine the papers/documents s& verity the signature of the applicant and forward the same to the concerned office of the CCI & E with a forwarding schedule in duplicate through bank’s representative. The duplicate copy of the same bearing the acknowledgement of CCI & E office of the receipt of the documents is back by the bank and is preserved.If the documents are found in order and the CCI & E is satisfied the IRC is issued to the applicant and sent direct to the nominated bank. The passbook is also issued by the CCI & E simultaneously to the importer and sent direct to the nominated bank.

 

THE WHOLE PROCEDURE OF IMPORT

Parties to a letter of credits:

As per terms and conditions of the L/C, the seller is required to be routed through some intermediary bank in other order to get his claim. So, we see hat there are a number of parties involved in a L/C involved parties to a L/C ar4e under

  • Importer/Buyer.
  • Exporter/Seller/Beneficiary
  • Opening/issuing Bank
  • Advising/ notifying Bank
  • Confirming bank (for add confirming L/C)
  • Exporter’s bank i.e. negotiating bank
  • Reimbursing bank or paying bank.

Preparation of Credit Report:

Bank prepared credit report in prescribed forms Character, capacity and capital which are known as the three C’s of credit. Instead of the three C’s some mention the three R’s i.e. reliability, responsibility and resources. To these three C’s we may add two more C’s i.e. collateral and conditions.

Position of the A/C:

Import Section will see whether there is sufficient fund available in account to cover the margin to be sanctioned, commission, postage, cable or Telex charge etc. If it is found O.K., L/C will be sanctioned. In all cases the sanction must be informed to the importer for acceptance. On receiving confirmation from the client then the terms and conditions of the sanctioned are acceptable, the subsequent documentation/ charge document are taken up.

Papers/ documents submitted by the importer before opening of the L/C:

  1. Trade License (Valid).
  2. Import Registration certificate (Must be kept in the bank custody).
  3. Passbook import.
  4. Income Tax declaration.
  5. Membership certificate.
  6. Memorandum of Articles (In case of Ltd. Co.)
  7. Registrar deed (In case of partnership firm)
  8. 13.5 Bank will supply the following papers/documents before opening of the L/C.
  9. L/C application form.
  10. LCA Form.
  11. IMP Form

 

SWOT ANALYSIS OF THE TRUST BANK LIMITED

The SWOT analysis comprises of the organization’s internal strength and weaknesses and external opportunities and challenges. SWOT analysis gives an organization an insight of what they can do in future and how they can compete with their existing competitors. This tool is very important to identify the current position of the organization relative to others, who are playing in the same field and also used in the strategic analysis of the organization.

Strengths:

  • The Trust Bank Limited has a research division.
  • The Trust Bank Limited has already achieved a good-will among the clients.
  • The Trust Bank Limited provides to its work force an excellent place to work.
  • The Trust Bank Limited provides to its customer excellent and consistent quality in every service.
  • The Trust Bank Limited is a financially sound company.

Weaknesses

  • Employees are not always motivated in some areas.
  • The Trust Bank Limited has not sufficient promotional activating.
  • The Trust Bank Limited lacks well-trained human resource in some area.
  • The procedure of credit facility is too lengthy to compare with other banks.

Opportunities:

  • The Trust Bank Limited can introduce more innovative and modern customer service.
  • The Trust Bank Limited can recruit experienced, efficient and knowledgeable work force to offer good working environment.
  • Emergence of E-banking will open more scope for The Trust Bank Limited
  • Many branches can be lunched in remote locations.

Threats:

  • The worldwide trend of mergers and acquisitions in financial institutions.
  • Frequent devaluation of BDT and foreign exchange rate fluctuation.
  • Lots of banks are comming with competitive new services.

 

 

CONCLUSION

The financial sector of Bangladesh is now considered to be the most regulated sector of the country. There are 52 banks operating in a small economy like Bangladesh resulting tough competition among the banks to grab the market share. Macroeconomic indicators of Bangladesh were volatile during the last six months of the fiscal year 2006-07. The economy is facing high inflation in the money market due to exorbitant rate of imported oil and several times devaluation of local currency against foreign currency. In order to ease the inflationary pressure and to control excessive credit, Bangladesh Bank has been following concretionary monetary policy from the beginning of the year 2005. Banks are being encouraged to increase interest rate, both deposits and lending. The central Bank has been increasing the CRR from 4.00% to 5.00% at March 2005. As a result, the inter bank money market has been facing severe liquidity shortage and the inter bank borrowing rate has been showing upward trend.

Despite the above setbacks, the macro-economy outlook for fiscal year 2006-07 remained favorable due to enhanced remittances from abroad, strong performance in the ready made garments industry and overall growth in the industrial and service sectors. After reviewing the favorable state of the economy, the Government and development partners envisage a 6% to 6.5% GDP growth in the fiscal year 2006-07 which is still, however, lower than the 7%, required to achieve the Millennium Development Goals.

As a third generation bank The TBL has been operating successfully in the banking arena for more than 7 years. Modern banking depends on comprehensive risk management, modern banking knowledge and management under the leadership of Mr. Iqbal U Ahmed, a career banker with more than 33 years experience, has been trying to overcome the shortcomings of the bank to make it as one of the best private commercial banks in Bangladesh in terms of efficient performance in capital adequacy, swift customer services through real time on-line banking. In the upcoming days, for maintaining the accelerated pace of business growth and operating performance, the bank will have to invest money for the development of IT infrastructure, HR quality and research. The present good asset quality, sound management, good profitability and strong liquidity deploying the best efforts with strong support from sponsors. However, the success of the bank will depend on proper implementation of Core Risk Management, achieving good profitability and at the same time maintaining good asset quality.

 

RECOMMANDATIONS

The recommendations are given below:

Appoint efficient Persons for Foreign Exchange Operations:

 Foreign Exchange is the vast and dynamic area. So more efficient  persons should be involved for these operations.

Technological Improvement in Foreign Exchange:

 Technological Improvement and more computers should be providing for foreign   exchange operations.

Enlarge Foreign Exchange Division:

Foreign Exchange Division should be enlarging because of large number of customers

Arrange Training Courses on Foreign Exchange Operations:  Arrangement of monthly /quarterly training courses /workshops for Foreign Exchange Operations selected by the Branches in order to promote Foreign Exchange of the desired level.

Encourage Women Employees in Foreign Exchange: The Trust Bank Limited should appoint a sufficient number of women employees to deal women entrepreneurs and understand their needs and thus create demand for investment in foreign exchange.

Provide Facilities For Internees: The Trust Bank Limited should utilize Internship Program as one kind of promotion policy to encourage its present and potential investment clients. Because, young generation is the vital force of our country. To do so this Bank should provide facilities to the interns through proper placement and practical operations as well as job certainty to those who bring themselves the best performers in doing their particulars.