Foreign Trade Operation of Mercantile Bank Limited & Its Impact on Economy

Abstract

Now a days Banks are under great pressure to perform to meet the objectives of various groups. As banking organizations have grown in recent years, more and more of them have been forced to turn to the money/capital markets to raise funds by selling stocks, bonds and short term IOUs. In many cases, the growth of local deposits has simply been inadequate to fund the growing need of customers for loans and new services. But bank’s entry into the market to raise funds means that their financial statements are increasingly being scrutinized by investors and by the general public. This development has places management under great pressure to set and meet bank performance goals. Banking system of Bangladesh has gone through three phases of development Nationalization, Privatization and Lastly Financial Sector Reform. Mercantile Bank Limited (MBL) started its journey in the financial sector of the country as an investment company back in May 20, 1999. The company operated up to 1999 with 9 branches and thereafter with the permission of the Central Bank converted in a full-fledged schedule private commercial bank in June 2, 1993 with paid up capital of Tk. 9.00 crore to serve the nation from a broader platform. The whole working process of Mercantile Bank Limited is divided into 3 divisions as under: i) General Banking Division ii) Credit Division, and iii) Foreign Exchange Division. This report has been prepared based on the information taken form mainly Foreign Exchange division as mentioned above. Though loans and advances and other schemes are the major parts of bank’s income but foreign remittance play a vital role in success of Mercantile Bank Limited. It has offered the clients deposit scheme, loan scheme, remittance service and the like. From 1999 to 2008 it has made strong initiative in banking sector. It can be one of the best private banks in Bangladesh, if it matches the expectation of the clients through the best banking services.