Project Report on Foreign Exchange and Foreign Trade: problems and prospects of Islami bank Bangladesh Ltd.

Abstract

Based on Islamic principles and shariah (Islamic law), with an authorized capital of TK. 500 million (12.5 millions dollars), the Islamic bank in Bangladesh, called Islami Bank Bangladesh Limited (IBBL) was incorporated on March 13, 1983 as a Public Limited Company under the companies Act of 1913. The bank started its financial activities witheffect from March 30, 1983. This is one of the first interest free banks in South Asia.

The opening of Islami bank brought a new era in the history of the country's financial market. The long cherished desire of many Muslims in the country was realized. Bangladesh,which is the second largest Muslim country of the world, Islami Bank Bangladesh Limited (IBBL)started as a joint venture multinational bank with 63.92% of equity contributed by the Islamic Development Bank and financial institutions like AI-Raji Company for Currency Exchange and Commerce of Saudi Arabia, Kuwait Finance House, Jordan Islamic Bank, Islamic Investment and Exchange Corporation of Qatar, Bahrain Islamic Bank, Islamic Banking System International Holding, S.A, Dubai Islamic Bank, Kuwait Ministry of Awqaf and Islamic Affairs. One of the main objectives of the Bank is to introduce a welfare oriented banking system and also to establish equity and justice in the field of all economic activities. Various welfare oriented schemes have been introduced since the inception of the Bank. The bank has been playing commendable role in setting up export oriented as well as import substitute industries in the country in order to save valuable foreign currency and there by contribute towards development of the country. The growth of foreign trade business of the bank has been quite phenomenal in last 5-6 years. In this report, efforts have been made to identify various problems of Foreign exchange and Foreign Trade as well as focusing on the Foreign exchange and Foreign Trade prospects. However, I have divided the whole report in six parts. In the first part, I have discussed about origin of the report, objectives of the report, limitations & methodology of the report.