A Study on over All Activities & Performance of Islam Bank Bangladesh Limited (IBBL)

Abstract

For an expanding economy, a developed and efficient banking system is indispensable. Among others, it helps transfer of financial resources from surplus units to deficit units and, hence. helps accelerate the pace of development by securing uninterrupted supply of financial resources to people engaged in numerous economic activities. The tremendous development that the world economy has experienced in the last few decades was contributed by several factors among which, growing in situational supply of loan able funds must have played the pivotal role . The role of banking is comparable to what an artery system does in the human body. Both commercial banks and other development financial institutions provide short-, medium-. and long-term credits to businesspersons and entrepreneurs who usually take the lead in ventures of economic development. Institutional supply of credit has been made possible by a system of financial inter-mediation organized in a way where conventional banks collect small savings from the public by offering them a fixed rate of interest and advancing the loan able funds out of the deposited money to enterprising clients charging relatively y higher rates of interest. The margin between these two rates is the bank's income. In addition. banks also provide many other services to the public for which it receives service charges. Despite the outstanding contribution of the conventional banking system (interest-based), several ancient and modern economists are critical about its efficiency level.