A Trend Analysis of The Foreign Trade Activities and Operations

Abstract

Banking system occupies an important place in a nation’s economy. In recent times the banking sectors are going through lot of changes due to deregulation, technological innovation, globalization etc. Bangladesh banking sector is struggling in adopting these changes. To thrive well in this changing environment, not only development of appropriate infrastructure is necessary but also infusion of professionalism in to banking service is essential. This report is an upshot of an internship program conducted on A Trend Analysis of The Foreign Trade Activities and Operations of Al Arafah Islami Bank PLC. Foreign Trade operations of the Al Arafah Islami Bank PLC. played a pivotal role in the overall business development of the Bank. This involves handling of Import and Export business through opening letter of credit, in short L/C and also inward & outward foreign remittance. The Bank provides these services through its branches all over Bangladesh under direct supervision and guidance of its International Division (ID) at Head Office with the help of its huge network of 501 corresponding banks and other financial institutions throughout the world. Main objectives of the study are to highlight the functions and operations of Foreign Trade department. The report is prepared based on secondary data mainly. The first chapter of the report discusses about “Background of the study”. The second chapter focuses on organization overview, objectives, methodology, scope and limitations. Third chapter is the total description of the “Foreign Exchange Business”. Fourth chapter discusses about the “Foreign Trade Operations of Al Arafah Islami Bank” which gives an introduction to the concept of L/C, Import, Export and Remittance. The fifth chapter analyzes the financial performance of the last five years of Import, Export and Remittance business. And the sixth chapter includes findings, some recommendations based on those findings and conclusion of the report. The findings and recommendations of the study may help the authority in decision making. As the overall growth rate trend of Export-Import operation is increasing day by day, (the Export growth rate is 41% and Import growth rate is 53%) Bank should use efficient technique and improve service quality.