Article of Bankers

Use of Trade Finance Techniques in Different Global Region! Open Account: Transactions mainly between exporter and importer; risky for exporter; involvement of banks are insignificant and thus low source of revenue; relatively cheap for the traders; guided by the purchase/sale contract; limited control of the regulators; greater involvement of country risk; high ML risk.   [...]

Bank Payment Obligation! BPO is a payment tool offering a level of security similar to that of a letter of credit. The BPO is an irrevocable undertaking on the part of an obligor bank (typically that of a buyer) to recipient bank (typically that of a seller) to pay a specified amount on agreed date [...]

International Bank Guarantees: International Bank Guarantees are availed for commercial and non-commercial purposes. Commercial guarantees are related to commercial contract between the supplier and the customer. Non-commercial guarantees are not directly related to commercial contracts but those are obligatory to be able to make a business. The demand guarantees may serve several purposes from indefinite [...]

Case Study on Consumer Borrower! Bank has sanctioned a Card facility to Mrs. Rahela with a limit of BDT 500,000. As per application she was the director of X Group & her husband’s name was mentioned as Monir (fake). Mr. Monir has also taken a personal loan & card facility from the bank amounting to [...]

Case Study on Small Enterprise Finance! QVC was established in 2012 located in Dinajpur for manufacturing chain used for motorcycle. The whole output will be sold to the particular motorcycle assembler of the country at pre-agreed rate. The production process is small because the parts of the chain are imported and then assembled in the [...]

Case Study on Medium Enterprise Finance! M/s. Baneco Solar Energy Ltd. is a new project incorporated in 2010 as a private limited company registered with RJSCF for assembling Solar Panel of different capacity using German Technology to fulfill the domestic demand by substituting imported products as well as to export worldwide. The company is located [...]

Case Study on Large Enterprise Finance! M/s. Emerald Oil Industries Ltd. registered as a private limited company with the Registrar of Joint Stock Companies and Firms (RJSCF) in July 2008, having its factory at Sherpur, is the pioneer of its kind for extracting edible oil from rice bran for 100% local utilization by substituting imported [...]

Case Study on Successful Borrower ? JMI Syringes and Medical Devices Ltd. as a joint venture with South Korea was established as a Private Limited Company in April, 1999. But at present it is a Public Limited Company. The project is situated at Noapara, Choddogram in the district of Comilla. The project is a pioneer [...]

Credit Sanctioning  Procedures/ Investigation and Disbursement ?   Loan Sanction Activities: ASSESSMENT OF CREDIT NEEDS OF A LOAN APPLICANT : The requirement of the funds shall be assessed keeping in view loan/limit applied by the borrower-applicant and actual business need computed on the basis of prevalent policy of the Bank for assessing credit requirement subject [...]