Foreign Exchange and Foreign Trade of IBBL

Executive Summary

The dissertation report is a great opportunity to justify the theoretical knowledge in respect to the practical world. So, it is a proper decision for the Department of Business Administration to introduce this type of Dissertation Program for the students of BBA program for better understanding and orientation with the practical job environment.

The dissertation report is prepared as requirement of BBA program of BangladeshIslamiUniversity. This report gives or focuses with clear idea with working experiences in IBBL to learn about the activities and operational strategies Of IBBL and how its activities are separate from the activities of conventional banks of Bangladesh. Especially this report focuses on “Foreign Exchange and Foreign Trade of IBBL: Problems and Prospects”.

Islami Bank Bangladesh Limited was established in March 1983 based on “Islamic Shariah” with a clear program of representing the operational meaning of participatory economy, banking and other financial activities as an internal part of an Islamic code of life. The philosophy of Islami Bank is to establish the democratic society based on the principles of the social justice and equity. As an internal part of this process Islami Bank introduced measures to abolish interest and charge or pay fixed interest on loans or deposits. Instead of predetermined interest on deposits, the depositors participate in the profit of the bank as an agreed ratio. Whereas, interest based conventional banks pay a certain fixed interest on savings and time deposits and grant loans with interest for any purpose.

This report is not only express the foreign exchange and foreign trade of IBBL but it is a complete report on general banking and investments of IBBL. The main theme of the report may be expressed as bellow:

The Foreign Exchange Business handled By IBBL may be classified as under:

  1. Import Business
  2. Export Business
  3. Foreign Remittance and
  4. Necessary service relating to Foreign Exchange and Foreign Trade.

The achievement of Islami Bank Bangladesh Limited in the area of foreign Exchange business has been quite phenomenal. The bank has been providing services to import and export trade and for repatriation of hard earned foreign exchange of Bangladeshi living and working abroad and has, by now, consolidated position in this area. To handle foreign exchange business effectively and efficiently, the bank has, over the years, developed a wide network of correspondents throughout the world. This report includes comparative performance analysis foreign exchange business with previous years. This dissertation report also includes organizational structures and key functions, Shariah Council and its functions, mode of investment of IBBL, documents needed for foreign exchange business and policies of foreign exchange business operation.

In addition to the above conclusions with recommendations and bibliography.

 Origin of the Report

Foreign trade means the cross border transactions for goods and services. It plays a very important role for the growth and development of the country. Foreign trade takes within its fold purchase (import), sale of goods (exports) and services across the borders. Bilateral relationships as well as diplomatic relationships with foreign countries are set up or rearranged through the exposure of foreign trade.

In the operation of foreign trade and its financing, there are some rules and regulations in the national and international levels like the Uniform Customs of practices and Documentary Credit (UCPDC), International Chamber Of Commerce (ICC) Publication, International Standard Of Banking Practice (ISBP), Foreign Exchange Regulation Act-1947, Foreign Exchange Guidelines and all the rules and Foreign exchange Circulars Of Bangladesh Bank, Commercial Policy of the Government.

In the time of globalization, countries tend to export the items in which they have competitive advantage and import those items where they lack the advantage. Import meets the need of the consumer goods, industrial inputs and other essentials causing outflow of foreign currency while export business takes the roles of minimizing the gap in balance of trade through inflow of foreign currency by remittance business.

Traditionally, import business of a country surpassed export business in terms of value. The scenery is same for the individual bank also. Islami Bank Bangladesh Limited being the leading private sector bank in respect of foreign trade has grown tremendously in the past decades. The involvement of the bank in the industrial sector as well as in the commercial sector ha raised the import business of the bank inexplicably with that export business. Foreign trade financing procedure involves many activities that create employment that reduce the poverty from the society.

For the growth and development of our economy, export and remittance earnings should be groomed up and import also should be enriched. Because foreign trade help to optimize the growth and development of a country. That will ultimately develop the professionalism of our banking industry. According to the economic cycle, the more export finance, the more employment, the more income, the more savings and the investment again. Islami Bank Bangladesh Limited is doing the needful according to the earlier mentioned economic cycle.

 Background of the Report:

As a BBA final semester student, each student should have to prepare a Dissertation Report on their choice which has been prescribed or assigned by the Honorable Supervisor. According to the requirement and assigned, I have already completed my Dissertation Report on “Foreign Exchange and Foreign Trade of IBBL: Problems and Prospects”. To prepare of my report a lot of time I went to Islami Bank Training and Research Academy (IBTRA) to collect necessary information and complete my report. On the basis f my practical experience as well as theoretical knowledge, I have completed the report regarding “Foreign Exchange and Foreign Trade of IBBL: Problems and Prospects”. The main focus on my study is to analyze the foreign exchange business of IBBL and also focus modes of Deposit and Investment of IBBL. Islami Bank receives or collects deposit and makes the investment or finance in various schemes approved by the Islamic Shariah. At present, as a leading bank, in foreign exchange business of IBBL is in the market share which is holding 17% of the total market.

Objectives of the Report:

The main objective of the study is to gather practical knowledge regarding banking system and operation. The practical orientation gives me a chance to coordinate out theoretical know3ledge with the practical experience. The followings are the objectives for the practical orientation of bank:

  • To evaluate the handling of Remittance (Both Inward and Outward) Procedure follow By Islamic Bank Bangladesh Limited.
  • To suggest some remedial measure to improve the above procedure.
  • To meet the course requirement.
  • To suggest some remedial measure to improve the above procedure.
  • To acquire the theoretical and operational knowledge in Foreign Trade.
  • To apply the theoretical knowledge in the practical field.
  •  To identify the problems and probable solutions related to import and export business and remittance faced by IBBL.
  • To study Export financing procedure follow by Islamic Bank Bangladesh limited.
  • To find out the overall performance of Foreign Exchange Business of IBBL.
  • To identify the strength and weakness of the Foreign Exchange Business of IBBL.
  • To study the financing procedures of the Import by the client of Islami Bank Bangladesh  Limited


The study is performed based on the information extracted from different sources collected by using a specific methodology. The information to be presented in this report has been collected from both primary and secondary source. Secondary data has been collected from Islami Bank Training & Research Academy, Islami Bank Central Library, Islami Bank Annual Report, Bangladesh Bank Annual Report, Journals and Foreign exchange related papers. This report is analytical in nature. The methodology is-

Population: All the branches of IBBL located in everywhere in Bangladesh have been taken into consideration as population. 

Sample: Islami Bank Bangladesh Limited, Head Office Complex Branch, Foreign Exchange Branch & Islami Bank Training and Research Academy (IBTRA).

Data Collection: Sources of data f this report can be classified into the following categories:

Primary Sources:

  • Face to face conversion with the respective officers and the staffs of the Branch of IBBL.
  • Interviewing of the officers and the staffs.
  • Sharing practical knowledge of the officials.
  • Relevant file study provided by the officers concerned.
  • In-depth study of the selected cases.

Secondary Sources:

  • Annual Report of IBBL
  • Managers Conference Report
  • Audited reports.
  • Relevant Books, research Papers, Newspapers and Journals
  • Banks Manuals
  • Statements
  • Periodicals
  • Website
  • Various Study Selected Reports.

Scope of the Report:

 According to the course requirement of BBA program of Bangladesh Islami University, each student has to prepare a Dissertation Report. A topic has been selected as discussed with the honorable course coordinator. I took this topic as I have a great desire to work on Islami Banking and as I am a practical internee in the foreign trade desk, so, I have a great opportunity to enjoy making a quality report on the topic “Foreign Exchange and Foreign Trade of IBBL: Problems and Prospects”.  Basis of my practical experience on the foreign trade desk as well as theoretical knowledge, I have completed the report. The report is based on the operational functions of IBBL, Head Office Complex Branch, Foreign Exchange Division and how they works to regenerate the Foreign Currency and Foreign Revenue from other countries and help to established corporate level of industry and also the managerial technique to solve the sensitive operation of the bank’s performance.

Rationale of the Report:

There are three types of schedule commercial banks are in operations in our economy. They are Nationalizes Commercial Banks, Local Private Commercial Banks and Foreign Private Commercial Banks. Islami Bank has discovered a new horizon in the field of banking arena, which offers different General Banking, Investments and Foreign Exchange banking system. So, I have decided to study on the topic “Foreign Exchange and Foreign Trade of IBBL: Problems and Prospects”. Because the Dissertation Report of the University is an integral part of the BBA program. So, it is obligatory to undertake such task y the students who desirous to complete and successfully end-up their BBA program. This also provides an opportunity to the students to minimize the gap between the theoretical knowledge and practical knowledge. That’s why I have prepared this report.

Limitations of the Report:

There are some specific constraints while I was conducting this study. But I applied wholehearted efforts to conducts the Dissertation Program and bring a reliable and fruitful results. In spite of my endeavor there are some constraints exists which are:

  • To collect data and information, it is a common tendency of any departments to keep back their departmental data and information.
  • Since the major source of the data was secret, a lot of important data could not be used in preparing the report.
  • Lack of available published data.
  • There is a difficult matter to collect sufficient data from banks. Many expected data I have failed to collect. So, lack of sufficient data is one of the most limitations of preparing of this report.
  • Most of the essential data are confidential for the bank. So, there is lack of primary data.
  • Lack of my experience and efficiency to prepare the standard report.
  • Lack in depth knowledge and analytical ability for writing such report.
  • Since I, a researcher, am not professional, the accuracy of the surveys may not have been completely flawless.
  • Another limitation of the report is Bank’s policy of not disclosing some data and some information for obvious reason, which could be very much useful.
  • The time period of the study is very short. I had only 90 days in may hand to complete this report which was not enough. So, I could in depth of the study. Most of the times officials were busy and were not able to give me much time.

Vision of Islami Bank Bangladesh Limited:

v  Vision of IBBL is to always service to achieve the superior financial performance, be considered a leading Islamic Bank by reputation and performance.

v  To establish and maintain the modern Banking techniques, to ensure soundness and development of the financial system based on Islamic Principles and to become the strong and efficient organization with highly motivated professionals working for the benefit of peoples, based upon accountability, transparency and integrity in order tom ensure the stability of financial systems.

v  IBBL will try to encourage savings in the form of direct investment.

v  IBBL will also try to encourage investment particularly in projects, which are more likely to lead to higher employment.

Mission of Islami Bank Bangladesh Limited:

To establish Islami Banking through the introduction of welfare oriented banking system and also ensures equity and justice in the field of all economic activities, achieve balance growth and equitable development through diversified investment operations particularly in the priority sections and less developed areas of the country. To encourage socio-economic upliftment and financial services to the low income community particularly in the rural areas is the main vision of IBBL.

Objectives of Islami Bank Bangladesh Limited:

ü  All activities are conducted on interest free system according to Islamic Shariah Principles.

ü  Investment is made through different modes as per Islamic Shariah Principles.

ü  Investment income of the Bank is shared with Mudaraba depositors according to the agreement.

ü  An agreed upon ration ensuring a reasonably fair rate of return on their deposit.

ü  Aims to introduce welfare oriented banking system.   

ü  Justice in the field of the economic operations.

ü  Extend socio-economic and financial services to individuals of all.

ü  Backgrounds with strong commitment in rural upliftment.

ü  Plays a vital role in human resource development and employment-generation particularly among the unemployment youths.

Portfolio of investment policy has been especially tailored to achieve balanced growth and equitable development through diversified investment operations particularly in the priority sector.       

Social-welfare activities of Islam bank foundation:

One of the distinguishing features of Islami Bank is that its overall activities are directed towards the welfare of the society. The Bank, since its inception, has dedicated itself for the emancipation of the helpless and downtrodden people of the society. With this end in view, the Bank has created a separate fund, which was earlier known as Sadaqua Tahbil. In 1991, the Sadaqua Tahbil was reorganised and enlarged-under the new name of ‘Islami Bank Foundation’ with a fund of Taka 38.00 million in order to conduct social-welfare activities on a wider scale. As one of the leading non-government voluntary organisations of the country, the Foundation has been working with unique and special programmes for the welfare of distressed humanity and to make poor, down­trodden, and landless and asset less people self-reliant.

The aims and objectives of the Foundation are to serve distressed humanity, promote people oriented mass education, extend health and Medicare facilities to the poverty-stricken people in urban and rural areas, create facilities for productive self-employment and develop human resources for improving economic condition and quality of life, assist healthy growth of art, culture

and literature, science and technology, sports, research and propagation of Islamic teachings. The Foundation has taken up a number of schemes covering the whole of Bangladesh.

Income Generating Program

Access to required finance and other related inputs may help many to become self-employed. In absence of such opportunity the unemployed youths entangle themselves in various anti-social activities. Islami Bank Foundation has, therefore, taken up the following Self-employment projects:

1.    Rickshaw

2.    Sewing

3.    Poultry   Keeping

4.    Rural Health Work

5.    Milk Cow/Goat rearing

6.    Small Trade

Educational Programmed:

Education is the backbone of a nation. Awareness building, skill training, access to ^information-all depends on education. But it is regrettable that the rate of literacy is still very low in Bangladesh. Most of the children are deprived of the light of education due to poverty, lack of sufficient educational institutions, non-availability of textbooks and equipments etc. In a ward, the unfavourable socio-economic conditions are responsible for this chaotic situation.

The Foundation has, therefore, taken up the following programmes to improve the country’s educational scenario:

a)   Support to Model Forqania Maktab

b)   Scholarship/lump grant for poor and Meritorious Students

c)   Financial support to Educational Institutions

Development of manpower, research, training and motivation

The principles and working procedures of Islamic banks are completely new and different from the conventional banks. There is an inevitable need for training of the employees of the banks to orient and attune them to the new system of Islami banking. To cater to this need, Islami Bank training and Research Academy (IBTRA) was established in 1984, soon after the inception of the Bank.

The activities of IBTRA cover both training and research on various aspects of Islamic banking. The Academy developed a rich library of its own with a treasure of valuable books on different subjects including Islamic economics, banking, comparative philosophies and journals of home and abroad and research articles and documents. Employees of the Bank, learners and researchers have been taking full advantage of the library.

The Academy edited books on “Readings in Islamic Banking” and “Investment Operations”. It also edited and published a brochure on “Investment and Trade Opportunities in Bangladesh.”

Keeping in view the existing and future training requirement of the Bank and also to generally cater such needs of different Islamic banking & financial institutions of the region, the management of Islami Bank Training and Research Academy has been placed at the disposal of an Academic Council consisting of 3 Directors of the Board, Management Executives of the Bank, Shariah scholar, renowned academicians and representatives of reputed institutions engaged in the training of bank officials of the country.

The Academy conducts training courses, and workshops. The courses include Islamic Banking, Banking Law and Practice, Investment Operations and Management, Foreign Trade and Foreign Exchange, Shariah Based Audit and Inspection.

Besides, orientation, induction, foundation and motivation courses on different subjects are also conducted round the year. In addition to conducting regular training courses, it arranges seminar on Islamic economics and banking and such other related topics of current interest.

Apart from this, an “Executive Development Programme” has been introduced at the Head Office of the Bank in Dhaka since 1988 for enriching knowledge and thought process and developing professional skill of the Executives. This programme has proved to be effective and now being extended outside Dhaka. The Academy conducts internship courses for the students of different Departments of various Universities of the country.

The Bank introduced annual award for the best three students of the Department of Banking and Finance of Dhaka University who secure 1st class 1st, 2nd and 3rd with ‘Islam! Banking’ as special subject from the year!994.he Bank is also providing financial assistance for publication of a textbook on ‘Islamic economics and banking’ for the university students.Besides, a motivational programme has been introduced since 1987 for the clients of the Bank. Client-orientation programme are arranged at different branches for disseminating the concept of Islamic economics and banking and to acquaint the clients with the operations of Islamic banking system, ‘he Bank, in 1993, co-sponsored a 3-day international Seminar on ‘Islamic Common Market’ n which scholars, economists, bankers, industrialists’ 2nd representatives of trade bodies of 15 countries participated. The Bank, with the collaboration of International Association of Islamic Banks (IAIB), organised an International Seminar on Islamic Banking in!985 and another international Seminar on Islamic Banking and insurance in 1989.Islami Bank Training and Research Academy has introduced Diploma in Islamic Banking since 1998.

Publicity and public relations

The Bank, since its birth, has been relentlessly working to project and promote the lofty ideals of Islam in the fields of economics and banking and to reach the people of all walks of life and bring home to them the concept of Islamic banking.

Thus, it has been able to create a favourable image about Islamic banking among the people. The Bank releases advertisements through radio, television, magazines and newspapers to make urban and rural masses aware of the ever growing concept, modes of operation, schemes and services of the Bank and to focus on its progress and motivate traders, businessmen and industrialists to establish and broaden their business links with the Bank. To promote healthy growth of art and literature in the country, literary magazines are patronised.

The Bank has so far published a number of books, booklets, souvenirs and folders on different aspects of Islamic banking and Islamic economics. Attractive multi-coloured posters were also published depicting the aims and objectives, people-oriented special investment schemes of the Bank.

National and international newspapers and magazines published features and in-depth reports on the progress of the Bank and made editorial comments praising the welfare activities of the Bank.

Bank’s quarterly research journal Islami Banking’ highlighting the concept of Islamic, economists, bankers, journalists, judges, intellectuals etc. A periodical house magazine named ‘Islami Bank Parikrama’ is being published regularly as the mouthpiece of the Bank. Discussion meetings, semi-economy, banking, insurance, prospect of economic collaboration among the Muslim countries etc. started its publication in 1992 which has been widely acclaimed by all section economy, banking, insurance, prospect of economic collaboration among the Muslim countries etc. started its publication in 1992 which has been widely acclaimed by all sections of people including academicians of people including academician, symposia, workshops are also being arranged to apprise the people of the Islamic banking system. Stalls and booths were opened in different national and international fairs for projecting the activities of the Bank.

Management and Internal Organization Management of IBBL 

A 24-member Board manages Islami Bank Bangladesh Limited. Of the Directors, 8 are foreigners and 16 are local. The Board of Directors forms a 9 member Executive Committee for efficient operation of the Bank. Besides, a Management Committee looks after the affairs of the Bank.

Management Approach and leadership style

IBBL Eastern Bank Ltd. Follows participate leadership approach. Work accomplishment is from committed people with interdependence through a common stake in organization purposed with trust and respect. They are the managers who display in their actions the highest possible dedication both to people and to work. They are the real term managers’ who are able to mesh the service needs of the enterprise with the needs of the individuals.

Technology at Islam Bank Bangladesh (ltd.)

With rapid change in communication banking worldwide has experienced a tremendous transformation and it is continually being shaped to suit the changes of industrialization of the society. Unfortunately, Bangladesh has missed much of the excitement and we are virtually unaware of the improvements in banking services in other developed countries.

IBBL has now brought a part of that development made through improved computer and communication technology. Clients of IBBL Bank will now enjoy service quality that is quite upgraded and to some extent unique.

Personal policies

Personnel policy at IBBL Bank Ltd. Is not clearly defined in Dhaka. However the broad outlines of the policy are:

>   To establish contingency plants for local staff protection

>   To develop programs to cross train personnel for added flexibility

Shariah Council of Islami Bank Bangladesh Limited:

Profile of the Council Members:

The Shariah Council of Islamic Bank generally consists of experts from the following four areas:

  1. Fuqaha: Persons representing this group must be well versed in the Quran, Sunnah and fully conversant with the opinion of all schools of Islami thought and Islami law and jurisprudence. They must view Islam as a total way of life and a living religion.
  2. Banker: there must be a member who is fully conversant with banking law and practices and has a practical experience in banking business including foreign trade.
  3. Economists: A member from this group need not necessarily be an Islami Economist to start with. But if he is an Islami Economist it is an added advantage. What is important is that he must be really proficient in modern economics with an in depth study of the community, which a bank is going to solve. He must have up to date knowledge in the development of the contemporary world.
  4. Lawyer: a member representing this group should be a successful practitioner lawyer. He must be proficient in the commercial law including company law. In consultation with the Fiqaha and Economist members’ f the council, he should be able to draft such innovating contracts, which will have the sanction of Islami principles and a banking law of the land.

Objectives of Shariah Council:

For the following reasons the Shariah Council is formed in the Islami Bank Bangladesh Limited:

      The functions of the council are to offer views and opinions of the matters related to the bank from time to time. The council may require any paper document from the bank and examine the same to see whether it is according to see whether it is according to the principles.

      The Shariah Council assists the Board of Directors by advising them on matters related to the Shariah.

      The opinion of the majority of members is taken as the opinion of the council provided that the said opinion is supported at least three Muftis of the council.

      The council maintains its secretariat and a well-equipped library as the Head Office of the bank where it keeps the proper records of all of its proceedings and decisions.

      The council elects a chairman and a secretary from amongst them. The chairman will normally preside over the meetings. In his absence the members elect one of them to preside over the meetings.

      The council may whenever it thinks necessary, constitutes a sub committee to help the council.

The council issues the Shariah Certificate in the Annual Report of the bank.

 Features of Islami Bank Bangladesh Limited:

The bank is committed to run all its activities as per Islamic Shariah. IBBL through its steady progress and continuous success has earned the reputation of being one of the leading private banks of the country. The distinguishing features of IBBL are as follows:

  1. All its activities are conducted on interest-free banking system according to Islamic Shariah.
  2. Establishment of participatory banking instead of banking on debtor-creditor relationship.
  3. Investment is made through different modes permitted under the Islamic Shariah.
  4. Investment income of the bank is shared with the Mudaraba depositors according to a ratio to ensure a reasonable fair rate of return on their depositors.
  5. Its aims are to introduce a well-fare orient banking system and also to established equity and justice in the field of all economic activities.
  6. It extends the Socio-economic and financial services to the poor, helpless and low-income group of the people for their economic upliftment particularly in the rural areas.
  7. It plays a vital role in human resource development and employment generation particularly for the unemployed youths.
  8. Its aims to achieve a balance growth and equitable development of the country through diversified investment operations particularly in the priority sector and in the less developed areas.
  9. It extends cooperation to the poor, the helpless and the helpless and the low-income group for their economic development.

Functions of Islami Bank Bangladesh Limited:

The functions of Islami Bank Bangladesh Limited are as under:

      To maintain all types of deposit accounts.

      To make investment.

      To extent other banking services.

      To conduct social welfare activities through Islami Bank Foundation.

The operation of Islami Bank Bangladesh Limited can be classified into three (3) major categories:

General Banking:

  1. Receipt and payment of cash.
  2. Mobilization of deposits.
  3. Handling transfer transactions.
  4. Operations of clearing houses.
  5. Maintenance of accounts with Bangladesh Bank and other banks.
  6. Collection of cheque and bill.
  7. Issue and payment of Demand Draft, Telegraphic Transfer and Pay Order.
  8. Executing customers standing instructions.
  9. Maintenance if internal accounts of the bank.
  10. Maintenance of safe deposit lockers.

While doing all the above noted work IBBL issue Cheque book, Deposit account opening form, SS Card, deposit account ledgers, preparation of statements of accounts, pass book, Balance of different accounts and calculate profits.

Products & Services

IBBL Offers the Following Accounts to the Depositors:

  1. Al-Wadeeah current Account.
  2. Mudaraba Saving Account.
  3. Mudaraba Term Deposit Account. (3/6/12/36 months)
  4. Mudaraba Special Notice Account.
  5. Mudaraba Hajj Saving Account.
  6. Mudaraba Special Saving (pension) Account (5 to 10 years).
  7. Mudaraba Saving Bond Scheme (5 to 10 years term).
  8. Mudaraba Foreign Currency Deposit Account.
  9. Mudaraba Monthly Profit Deposit Account.
  10. Mudaraba Moharana Account.
  11. Mudaraba Waqf Cash Deposit Account (MWCDA).

 Foreign Currency Deposit Accounts:

  1. Foreign currency deposit ( USD, EURO, GPB)
  2. Mudaraba Foreign Currency Deposit
  3. FC Deposit ERQ

 Investment Modes:

  1. Bai- Muajjal;
  2. Bai-Muravaha;
  3. ire purchase under Shirkatul Melk;
  4. Mudarabah;
  5. Musharaka;
  6. Bai-Salam;
  7. Bai-As-sarf.

 Welfare oriented special Investment Schemes

  1. Household Durables Scheme;
  2. Housing Investment Scheme;
  3. Real Estate Investment Program;
  4. Transport Investment Scheme;
  5. Car Investment Scheme;
  6. Investment Scheme for Doctors;
  7. Small Business Investment Scheme;
  8. Agriculture Implements Investment Scheme;
  9. Rural Development Scheme;
  10. Micro Industries Investment Scheme;
  11. SMEs Investment Scheme;
  12. Women Entrepreneurs Investment Scheme;
  13. Rural Housing Investment Scheme;
  14. Mirpur Silk Weavers Investment Scheme;
  15. Equity and entrepreneurship Fund of Bangladesh Bank;

 Foreign Remittance:

There are 16 (Sixteen) Representatives of IBBL in 5(Five) Countries to serve expatriate customers to open account, encourage and enhance Foreign Remittance.

 Treasury Activity:

Dealing Room Operation.

 Special Services through Islami Bank Foundation:

  1. Islami Bank Hospital;
  2. Islami Bank Medical College Hospitals;
  3. Islami Bank Community Hospital;
  4. Islami Bank Nursing Training Institute;
  5. Islami Bank Homeopathic Clinics:
  6. Monorom: Islami Bank Crafts & Fashion;
  7. Islami Bank Institute of Technology;
  8. Islami Bank International School and College;
  9. Islami Bank Model School;
  10. Islami Bank Mohila Madrasah;
  11. Bangladesh Culture Centre;
  12. Distressed Women Rehabilitation Centre.

Training Services:

  1. International: Officials of Foreign Banks on Islamic Banking;
  2. National: Training own manpower & others on Islamic Banking;
  3. Islami Banking Diploma.

Foreign Exchange Business:

Foreign Exchange Business plays a vital role in providing substantial revenue in the bank income. Like all modern banks IBBL operates in the area of Foreign Exchange business. IBBL performs the following tasks:

      Opening Letter of Credit on the principle of Mudaraba sale, on the principle of Musharaka sale and under wage earner scheme.

      Opening of Letter of Credit against commission for importing industrial, agricultural and other permissible items under Islamic Shariah and import policy.

      Handling of import and export documents.

      Financing in import under MPI (Mudaraba Post Import).

      Financing to export on profit and loss sharing.

      Handling inward and outward remittance.

      Negotiation of export or import document when discrepancy occurs.

Special Scheme:

      Islami Bank Hospital.

      Islami Bank Medical College, Rajshahi.

      Islami Bank Community Hospital.

      Islami Bank Nursing Training Institute.

      Islami Bank Institute of Health Technology.

      Islami Bank Homeopathic Clinic.

      Monorom Islami Bank Crafts & Fashion.

      Islami Bank Service Centre.

      Islami Bank Institute of Technology.

      Islami Bank International School and College.

      Islami Bank Cultural Centre.

      Distressed Women Rehabilitation Centre.

SWOT Analysis of Islami Bank Bangladesh Limited:

SWOT analysis is a planning exercise in which managers identify organizational Strengths (S), Weakness (W), Opportunities (O), and Threats (T).


  • Strong base in reserve.
  • Strong base in equity.
  • Strong base in deposit.
  • Skilled manpower.
  • Goodwill in market.
  • Modern Technology & Equipment.
  • Stable source of fund.
  • Largest network among private commercial Banks.
  • Strong liquidity position.
  • Low cost of fund.
  • Internal resources that is available of things that an organization dose well.
  • The organization is going to start highly skilled technical service and On-line.
  • Banking software, which will help customers with some of the most difficult existing computing application systems.
  • Strong net work (total 151 no. of Branches under online)

So, strength of the Bank is enough.


Resources that an organization lacks or activities that it does not do well are:

  • In the organization, decision-making is more or less centralized at top of the organization. A group of senior managers made all significance operating decisions and then communicated the decisions down a very tall hierarchy to the managers at lower level. The organization’s tall centralized structure slowed decision making and its conservative orientation made managers reluctant to change.
  • Lack of skilled manpower-Islami Bank is a new subject people and adequate knowledge and skilled about Islamic Banking is not big in number.
  • There is no Islamic money market in the country for that idle fund can not utilize in the market.
  • Lack of proper Rules & regulations govern in Islamic Bank.
  • Islamic Banking Law in the market.
  • Lacks of Islamic money market instrument.
  • IT and E-Banking status dose not match with Bank’s other strength.


It is positive external environmental factors:

  •  In the organization, one opportunity is the Internet Banking. Customers are looking for better services from Bank. So, Internet Banking can help the customers to see their account information from their home personal Computer.
  • On Line banking system, customers will be attracted to the Bank.
  • Most of our people are pious; they want to deposit their fund in interest free organization. For this Islami Banks enough opportunity for deposit mobilization also for strong base of equity IBBL can disburse large scale of Investment, which can help to achieve more profit and poverty elevation.
  • Increasing awareness of Islamic Banking.
  • Opportunities to develop Islamic Investments.
  • Being large bank it can provide large investment.


It is negative external factors:

  • In the Banking sector, the main threats for an organization is the rise of global organizations, that operate and compete in more than one country, has put severe pressure on many organizations to improve their performance and to identify better ways to use their resources.
  • There are more new Islamic Banks are come forward to operate their business and some conventional Banks also opening their Islamic Banking Branches. So, increased competition in the market for public deposits.
  • Market pressure for lowering the profit/interest rate.
  • Dissatisfaction-Pay-package of IBBL employees is less enough in comparison to other private commercial Bank. As a result efficient manpower may switchover from the Bank which is also a threat for the Bank.

Foreign Exchange:

As more than one currency involved in foreign trade, it gives rise to exchange of currencies whish is known as foreign exchange. The term “Foreign Exchange” has three principal meaning. Firstly, it is a term used referring to the currencies of the other countries in terms of any single one currency. Secondly, then term also commonly refers to some instruments used in international trade, such as Bill of Exchange, Drafts, Traveler’s Check and other means of international Remittance. Thirdly, the term foreign exchange is also quite often referred to the balance of foreign currencies held by a country. In terms of section 2(d) of the foreign exchange regulations 1947, is adopted in Bangladesh. Foreign exchange means foreign currency and includes any instrument drawn accepted issued or made under clause (13) of article 16 of the Bangladesh Bank order 1972, all the deposits, credits and balances payable in any foreign currency and draft check, letter of credit and bill of exchange expressed or drawn in Bangladesh currency but payable in foreign currencies.

In exercise of the powered conferred by section 3 of the foreign exchange regulation, 1947 Bangladesh Bank issues license to the schedule banks to deal with exchange. These banks are known as Authorized Dealers. Licenses are also issued by Bangladesh Bank to person or firms to exchange foreign currency instruments such as T.C. Currency notes and coins. They are known as Authorized Money changes.

Functions of Foreign Exchange Department:


  1. Pre-shipment advanced.
  2. Purchase of foreign bills.
  3. Negotiating of foreign bills.
  4. Export guarantees.
  5. Advising or confirming letters- letter of credit.
  6. Advance for deferred payments exports.
  7. Advance against bills for collection.


  1. Opening of letter of credit.
  2. Advance bills.
  3. Bills for collection.
  4. Import loan and guarantees.


  1. Issue of DD, TT, MT etc.
  2. Payment of DD, TT, MT etc.
  3. Issue and enhancement of travelers check.
  4. Sale and enhancement of foreign notes.

Documents Used in Foreign Exchange:

Bank deals with documents not goods. Foreign trade involves the movement of goods from one country to another, passing of ownership of goods from the seller to buyer, the payment for the goods and its remittance from the importer’s to the exporter’s country. For these process documents are only the prime evidence of all activities. Therefore, a good number of documents are use in foreign trade. The major or important documents are described as under:

Bill of Exchange:

The bill of exchange is the most important and most widely used instrument in international trade by which sellers can obtain the payment from their buyers for the invoiced value of goods.

Bill of exchange is a negotiable instrument. It is an unconditional order, signed by the maker, directing a certain person to pay on demand or a fixed determinable future time a certain some of money only of or to the order of a certain person, or to the bearer of the instrument.

On analysis of the definition, the features of the bill of exchange may be observed as follows:

v  It must be in writing.

v  It must contain an order to pay on demand or at a fixed or determinable future time.

v  The order must be an unconditional one.

v  It must be signed by the drawer.

v  The drawee must be the certain.

v  The instrument must contain an order.

v  The bill of exchange must be properly steamed.

Bill of exchange carries six parties. As such:

  1. The Drawer
  2. The drawee
  3. The Payee
  4. The Endorser
  5. The Endorsee and
  6. The Acceptor.

The Drawer: The Drawer is a person who draws the bill. He is the creditor to whom the money is owed

The drawee: The drawee is a person to whom the bill is drawn. He is the debtor who owes money to the Drawer.

The Endorser: The Endorser of the bill is the person who has placed his name and signature at the back of the bill signifying that he has obtained title of the bill and payment is due to him on his own account or on account of the original payee.

The Endorsee: The Endorsee is a person to whom the bill is endorsed. The endorsee can obtain payment from the drawee.

The Acceptor: The Acceptor is a person who undertakes to pay the issuance or time bill by accepting the same. The drawee himself may be the acceptor of the bill.

Transport Documents:

Transport Documents which evidence that the goods have been delivered to the named slippers, airlines or transporters for carriage to a named port, airport or place of delivery. Following transport documents are being used at present in the international trade:

  • Airway bill or Consignment Note
  • Mate’s Receipt
  • Bill of Lading
  • Railway Receipt or Railway Consignment Note
  • Truck Receipt or Roadway Receipt
  • Postal Receipt

Bill of Lading:

A Bill of Lading is defined as “a document which evidences a contract of carriage by sea and the taking over a loading of the goods by the carries, and by which the carrier undertakes to deliver the goods against surrender of the document”.

A bill of lading renders of the following three functions:

1.  It is an evidence of the contract of carriage.

2.  It is a receipt for the goods received by the carrier.

3.  It is a document of the title of the goods.

Contents of the Bill of Lading:

Though the form of a bill of lading differs from one shipping company to another, its general contents can be stated as follows:

  1. It describes the general nature of the goods.
  2. Shipping marks for the identification of the goods.
  3. An express statement, if applicable, as to the dangerous character of the goods.
  4. The number of packages or pieces.
  5. The weight of the goods or their quantity otherwise expressed. All these particulars are based on the information furnished by the shipper.
  6. The apparent condition of the goods; normally the bill of lading declares that the goods has been received in ‘apparent good order and condition’.
  7. The name and the principal place of business of the shipping company.
  8. The name of the shipper, i.e. consignor.
  9. Notify address; the person to whom notice should be sent of arrival of cargo at the port of discharge; normally the importer.
  10. The port of lading.
  11. The date on which goods were taken charge by the shipping company.
  12. The port of discharge.
  13. The number of originals of the bill of lading issued, if more tan one.
  14. The place of Issuance of the bill of lading.
  15. The signature of the master of the ship or agent of the shipping company. The freight to the extent payable by the consignee or other indication that freight is payable by him or particulars of freight paid.

Classification of Bill of Lading:

On the basis of situation and conditions bill of lading are classified as the following name:

  1. ‘Clean’ and ‘claused’ or ‘dirty’ or ‘foul’ Bill of Lading.
  2. ‘On-board’ or ‘shipped’ and ‘received for shipment’ Bill of Lading.
  3. Through’ or ‘Port to Port’ Bill of Lading.
  4. State Bill of Lading.
  5. Charter party Bill of Lading.
  6. ‘Negotiable’ or Non- negotiable’ and ‘Straight’ or order Bill of Lading.
  7. Liner Bill of Lading.
  8. House Bill of Lading.
  9. Short form or Blank Back Bill of Lading.
  10. Third Party Bill of Lading.
  11. Combined Transport Bill of Lading.


Proforma Invoice:

Proforma invoice is the offer or quotation of the supplier to the buyer. If the buyer accepts the offer or quotation, the invoices become the contract between the buyer and the seller. Before opening of L/C the applicant will submit the Proforma invoice to the issuing bank as a contract with the supplier.

Commercial Invoice:

When the supplier shipped the goods, he prepares the final invoice which is used commercial invoice. This has no define form but usually commercial invoice includes description of goods, unit price, name of the buyer and other specification as per credit term.

Consular Invoice:

This is an invoice issued or certified by the consulate or embassy of the importing country, situation in the exporting country. This type of invoice is called legalized invoice.

Custom Invoice:

These are the specific form supplied by the Consular Office of the importer dully filled and signed by the shipper and serve the purposes of making easy entry of the merchandise into the importing country. These invoices are for easy custom clearance.

Certified Invoice:

Certified invoice is an invoice bearing a signed statement by some one in the importer’s country, who have inspected the goods and found in accordance with those specific in contract.

Import Finance:

Mainly three types of import are done in purpose wise. They are-

  1. Import of trading item for ultimate user or consumer under Bai-Murabaha/ Bai- Muajjal Mode.
  2. Import of raw materials or industrial item for further processing or further production under Bai-Murabaha/ Bai- Muajjal Mode.
  3. Import of Capital Machinery & Capital Item under Hire Purchase Shirkatul Melk (HPSM).

In all types of import usually the importer take bank finance. Import finance can also be made under Bai-Salam or Musharaka or Mudaraba modes. Islami banks has to perform its all transactions related to import and export by aiding the National and International rules and regulations in addition to its own rules/ regulations/ guidelines etc.

Import under Bai-Murabaha:

Bai-Murabaha is a contract between a buyer and a seller under which the seller sells certain specific goods permissible under Islamic Shariah and the Law of Land to the buyer at a cost plus agreed profit payable in cash or any future date in lump sum or by installment. The profit mark-up may be fixed in lump sum or in percentage of the cost price of the goods.

Procedure of Import of goods under Bai-Murabaha:

Under this mode bank purchase goods from foreign supplier and sale the same to the importer or client. As per international banking practice and as per UCPDC goods consigned to the opening bank i.e. the owner of the goods is bank till transfer the ownership by endorsement on the back of Bill of Lading (B/L) or other transport document. Also as per UCPDC payment claim by the supplier of the goods to the L/C opening through drawing Bill of Exchange of Bank.

Export Finance:

Export means flow of gods and services produced with a country but purchased by economic agents (individuals, firms or government) of other countries. In other words in case of exports products sold outside the country. So getting payment against such sale usually requires different time span depending on the terms of sale contract or relative payment terms of export L/C.

In view of above exporter require immediate fund and other financial facilities to execute their export order. It is the bank who extends such facilities as needed by the exporter. And facilitating export by financing at different stages is now important part of banks activities.

Exporter requires financial assistance at two stages namely-

  1. Pre-shipment stage and
  2. Post shipment stage.

So, export finance can be classified into two categories-

  1. Pre-shipment finance
  2. Post shipment finance

Different Islamic modes are there for financing export at two different stages as mentioned above.

Pre-shipment Finance

Pre-shipment finance as the name suggest, given to finance the activities of an exporter prior to the actual shipment of the goods for export. The purpose of such finance to meet Working Capital needs starting from the point of purchasing raw materials to transportation of goods to foreign country. Pre-shipment finance is given for the following purposes.

  1. Finance for local procurement of goods.
  2. Procuring and processing of goods.
  3. Packing and transportation of goods.
  4. Payment of insurance premium
  5. Payment of utility bill
  6. Payment of wages and salary
  7. Freight charge.

Pre-shipment finance can be made under the following Islamic Modes as follows:

Back to Back L/C:

To purchase or procure goods for export processing bank may provide facility in the way of back to back L/C opened under Bai-Muajjal mode. If the back to back L/Cs are opened in deferred payment basis no finance by the bank is required except if they fail to make shipment in time.

Raw Materials Purchase under Bai- Muajjal:

It is a contract between a buyer and a seller under which the seller sells certain specific goods (permissible under Shariah and the law of land) to the buyer at an agreed fixed price payable at a certain future date in lump sum or within a fixed period by installment.

Important Features of Bai-Muajjal:

Most of the features of Bai-Murabaha & Bai-Muajjal are same except the followings:

  1. It is purely a sale o credit.
  2. The seller (Bank) may sells the goods at an agreed price which will include both the cost price and the profit, un like Bai-Murabaha, the bank may not disclose the cost price and the profit separately to the client.

Procedure of import under Bai-Muajjal is almost same. Bai-Muajjal agreement is taken instead of Bai-Murabaha agreement.

Raw Materials Purchase under Bai-Murabaha TR:

For purchase of raw materials or goods for export bank can finance under Bai-Murabaha TR mode. That means the exportable goods or raw materials are purchased under Bai-Murabaha mode and delivered to the exporter or client against Trust Receipt duly signed by the client. After processing or producing of the finished goods by using the raw materials, the exporter shipped the same for export. Upon realization of proceeds bank adjust the liability under Bai-Murabaha TR.

Analytical Part:

Market Share of Islami Bank Bangladesh Limited in Relation to other Banks:

The deposit of IBBL as on June 30, 2010 was Tk.524396 Million and then total ratio of the market is 15.52%. And in June 30, 2009 was 426541 and the ratio was 15.27%. The rate of increase in deposit rather than 2009 in 2010 is 22.94%. On the other hand the investment as on June was Tk.485689 and on June 30, 2009 was Tk.387431. The increase of Investment rather than 2009 in 2010 was 25.36%.


Total of IBBL as on 30.06.2010

Market Ratio (%)

Total of IBBL as on 30.06.2009

Market Ratio (%)

Increase in 2010 rather than 2009













 Market Value Added Statement:


Sector-wise Investment:

As on December 31, 2010, rather than the previous years the investments of Islami Bank Bangladesh Limited are given below:

Million Tk.

SL. No.

Investment Items




Total Investment (%)


Total Investment (%)











3Real State






























In 2009 IBBL opens 38717 L/C’s in against of Tk.161230 million. And in 2010 IBBL opens 46736 L/C’s in against of Tk.246281 million. The rate of growth is 53%. The main goods that are imported are as follows:

 Figure in Million Tk.

Sl. No.

Items Imported






































Motor Car












Take oil












Scrap Vessel

















Problems of Islami Bank Bangladesh Limited in Foreign Exchange Business:

The problems that are faced by Islami Bank Bangladesh Limited in operating Foreign Exchange Business are as follows:

Negative Propagation against IBBL:

During early months of this year, some newspapers & electronic media published lot of misleading news against IBBL which created confusion among expatriates in sending remittance to the bank. However, we maintained regular contract with expatriates & well wishers and the situation has improved later on.

Higher Exchange Rate:

Due to restriction in funded investment, import business of the bank has decreased in few months. As such we have to sell huge Foreign Currency received against foreign remittance to Inter bank Foreign Exchange Market at a lower price. If we could utilize such fund in our own import requirement, we could offer higher rates to Exchange Houses and get more remittances.

Volatile Foreign Exchange Market:

Due to frequent up and down in Foreign Exchange Market of the country, the remittance flow has been affected substantially. The country as a whole experienced negative growth of remittance prior of Eid-ul-Fitr which is quite unusual in the history of Bangladesh. At a certain Nationalized Commercial Banks offered more than Tk. 2 per USD to Exchange Houses than the rate prevailed in the Foreign Exchange Market.

Delay in Full Automation:

Due to lion automation of all remittance services & logistics supports in sonic Branches, our customer services have not yet fulfilled the requirement of Exchange Houses. However we are trying to improve the procedure of handling remittance with the help of ICID.

Aggressive Marketing by Some Banks:

Some local private banks are undertaking vigorous or aggressive marketing. Offering lucrative rate on deposits and providing excellent customer services. Through the Branch network & customer base of those banks are not so wide, yet they are able to get media coverage in case of remittance handling as well.

Issue Related to Fixing up Profit:

Profit can be charged only once specific goods. As mentioned earlier, in many cases exporter can not deliver goods at a time, he has to effect partial shipment. But bank realizes commission and charges at a time while opening L/C for the full value of goods. Thread able the cost of goods and related profit fixation is not done on deal basis.

Insufficient of Foreign Exchange Knowing Person:

IBBL is a largest bank which deals a vast volume of foreign Exchange Business. And day by day foreign exchange is increasing but proportionately Foreign Exchange knowing persons do not increase. As a result IBBL faced problem to run the Foreign Exchange Business Smoothly

Lack of Foreign Exchange Treasury Product:

For Islami Bank there is no treasury product in the market. For this reason they can not deal in foreign exchange treasury market under forward buying and selling of the currency.

Relationship with Foreign Banks:

Another important issue facing Islamic Banks in Bangladesh is how to organize their relationships with foreign banks, and more generally, how to conduct international operations. This is, of course, an issue closely related to the creation of financial instruments, which would be simultaneously consistent with the Islamic Principles and acceptable to the interest based banks, including the foreign banks.

Shortage of Supportive and Link Institutions:

Any system, however well integrated it may be, can not thrive exclusively on its built in elements. It has to depend on a number of link institutions and so is the case with Islamic Banking. For identifying suitable projects, Islamic Banking can profitably draw the services of economists, lawyers, insurance companies, management consultants, and auditors and so on. They also need research and training forums in order to promoting entrepreneurship amongst their clients. Such support services properly oriented towards Islamic Banking are yet to be developed in Bangladesh.

Contradiction between the Law of Land and Shariah Law:

It is one of the great problems of IBBL. As Shariah Law is not available in our country, it is difficult to continue business according to Shariah.

Lack of Modern Communication Instruments:

Due to the lack of modern communication instruments Islami Bank Bangladesh Bank Limited has facing a lot of problems in operating Foreign Exchange Business smoothly in our country like the other banks.

Absence of Islamic Money Market:

Due to absence of Islamic Money Market in Bangladesh, the Islamic banks can not invest their surplus fund i.e. temporary excess liquidity to earn any income as all the Government Treasury Bonds, approved securities and Bangladesh Bank Bills in Bangladesh are interest bearing. Naturally, the Islamic Banks can not invest the permissible part of their Security Liquidity Reserve and liquid surplus in those securities. As a result they deposit their whole reserve in cash with Bangladesh Bank. Similarly, the liquid surplus also remains uninvited. The profitability of the Islamic Banks in Bangladesh is therefore adversely affected. Introduction of Islamic instruments by Bangladesh Bank is a long demand of the Islamic Banks in Bangladesh which is yet to be executed.


With a view to overcoming the weak points & utilizing the strengths, IBBL may take proper steps for deriving benefits out of all opportunities & successfully facing all issue related to the foreign exchange business. At this critical juncture, I would like to propose some suggestions or recommendations to IBBL for improving Foreign Exchange Business Portfolio in genera; which are:

  1. To develop quality service in respect of speedy disposal both at Branch and Head Office regarding Foreign Trade Operations.
  2. To accumulate automated service for foreign trade for facilitating the importer and the Exporter.
  3. To induce quality client and select best project for risk free International Trade.
  4. To introduce new Foreign Exchange products to adjust with the global foreign trade.
  5. To research about the principles of Shariah issue in respect of new Foreign Exchange products.
  6. To study or survey of the local and foreign markets for the potential of import and export business.
  7. To meet all types of unique needs of the clients in the changing pattern of the world trade.
  8. To integrate and strengthen the treasury and fund management at Head Office through automation.
  9. To formulate the sustainable import and export policy.
  10. To strengthen, supervision and monitoring squared for RMG sector to promote the foreign trade.
  11. To ensure supervision & Technical support for bulk import from Head Office.
  12. To offer competitive commission rate.
  13. To maintain rapport with Bangladesh Bank for AD license and other business policy.
  14. To organize training and workshop for AD Branch Managers and Officials, Non-AD/Forwarding Branch Managers & officials for developing the personnel skill.
  15. To ensure complete compliance of Bangladesh Bank’s Guidelines.
  16. To increase the supports and facility to the exporters and motivates them to maximize the export earnings.
  17. To emphasize on opening of L/C of government and semi government organizations for risk free operations.
  18. To diversify the foreign trade operations.
  19. L/C’s for import of machinery may be made easier.
  20. All AD Branches should try to perform at optimum level.
  21. Discretionary power for L/C and MPI should be same.
  22. To encourage for exporting of non-traditional items.
  23. To develop and active the properly the Management Information Systems for import and export business.
  24. Data bank of credit reports may be maintained carefully.
  25. To gather of all import and export clients.


For any banking business foreign trade is the key part of it. Foreign trade consists of export and import. Since Bangladesh is an import based county, so huge payments are made through the hard earnings foreign currency from export and foreign remittances. In conducting of this case study, it reveals that out of the total foreign trade and foreign  Remittance business of Bangladesh, Islami bank Bangladesh has got good will in terms of volume of foreign volume of foreign exchange business and among the banking business in the banking industries it has achieved a remarkable achievement in growth in all areas and is playing in an important role for the creation in the employment as well as through the diversification of its investment and finance. The bank has achieved the market share 14.16% against import, 8% against export and 18.59% against remittance.Today Islami Bank Bangladesh Limited is the market leader in the foreign exchange market and it is keeping an important role to establish the foreign exchange business within the regulatory framework. It is influencing huge foreign currency through export and remittances that strengthening the banking channel and at the same time it is contributing the boosting up the essential food items and also capital machinery and so many ones. Today’s six billion dollar foreign exchange reserve of our country is the outcome of all efforts of Islami bank Bangladesh limited as well as efforts of the whole banking industry.In this study, we see that the bank has good perspective and there are also some challenges in the future. Negative Propagation against Islami Banking, Volatile Foreign Exchange Market, Lack of Automation etc. and some Shariah complaint issues are the challenges for the bank.For the growth and development of our economy, import of capital Machinery, export and remittance earnings should be groomed up and import also should be enriched. Because foreign trade help to optimize the growth and development of our country. That will ultimately develop the professionalism of our banking industry. According to the economic cycle, the more export finance, the more employment, the more income, the more saving and the more investment again. Islami Bank Bangladesh Limited is doing the needful according to the earlier mentioned economic cycle. Not only IBBL but all banking industry should be come forward to develop and enriched foreign trade procedure and its finance and then it is possible to demark in the banking industry.