An Analysis of Foreign Exchange Activities of Mercantile Bank Limited

Today necessity of a Bank as a financial institution is undeniable. A country is financially rich when it has modern financial institutions of its own. These institutions play a vital role in the field of financial stability of a country. Banking sector is one of the stable financial institutions of a country. Due to Globalization and Technological changes, the banking business has become very competitive now a day. All banks are competing to give effective real time service to their customers. For giving friendly service to the customers they need experienced and well-educated working force. Here both primary and secondary information were used. Interview was the basic techniques comply to collect primary sources from any people within the organization. Information about the varieties of activities within the Correspondent Banking Department was collected through interviewed. Among the secondary sources to collect data regarding the Annual reports2008, 2009, 2010, 2011 of Mercantile bank limited(MBL), Internet used as a theoretical source of information, Periodical published by Bangladesh Bank, Different publications regarding banking function, and Web sites and Newsletter as a major sources.

Mercantile bank limited (MBL) is one of the technological advanced private commercial bank in the country having wide branch and associate network through the country. All the branches are running with real-time online and ATM facilities to settle their transaction from remote areas. This bank has been playing a vital role in socio economic, Industrial and agriculture development. Bank credit is an important catalyst for bring about economic development in a country. The Mercantile bank limited (MBL) plays an important role to move the economic Wheel of the country. The Foreign Exchange division plays significant roles through providing different services for the customer. Foreign exchange department also provide foreign remittance like travelers, money gram, foreign demand draft etc. The Foreign Exchange department of Mercantile

Bank Limited (MBL) has been broken into three parts: Import, Export and Foreign Remittance. Mercantile bank limited (MBL) is always committed to facilitated import of different goods into Bangladesh from the foreign country. For exporting goods, bank may act as advising banks and negotiating bank for the exporter. Mercantile bank limited (MBL) value their customer to provide efficient services offering best competitive price for their hard earning foreign currencies to facilitate Bangladesh bond remittance globally. There are different types of banks such as; Central Banks, Commercial Banks, Savings Banks, Investment Banks, Industrial Banks, Co-operative Banks etc. Every Bank has different types of areas, Such as General banking section, Loan section, Credit section, Foreign Exchange section. Now-a-days the Foreign Exchange sector of every organization makes a positive reflect. Foreign Exchange sector also makes a positive reflect to the economic development of our country day by day. Foreign Exchange sector gets much popularity to the mind of people republic of Bangladesh. As a private Commercial Banks, the Mercantile Bank Limited (MBL) has a successful operational performance over the foreign exchange sector. It also performs all the modern Foreign Exchange activities to satisfy its clients. This study attempts to analyze Foreign Exchange activities of Mercantile Bank Limited (MBL).

BBA program allows its student to study and analysis a selected organization in order to get a practical knowledge, which also facilitates use of theoretical knowledge, student has already gathered. Mercantile Bank Limited emerged as a new commercial bank to provide efficient banking service and to contribute socio-economic development of the country. The bank commenced its operation on June 2, 1999. The authorized capital of the bank is TK. 800 million and the paid up capital is TK 245 million. Mercantile Bank Limited (MBL) is one of the risen Banks in Bangladesh.