Professional Documents
Culture Documents
COMMERCIAL BANK
(STANDARD BANK
LTD.)
BANKING LAW &
PRACTICE
SUBMITTED TO
SUBMITTED BY
SK. ALAMGIR HOSSAIN
GROUP NO- 21
LECTURER
BATCH, BBA.
DEPARTMENT OF FINANCE
DEPARTMENT OF FINANCE
JAGANNATH UNIVERSITY
JAGANNATH UNIVERSITY
7 TH
Group list
NAME
KISHANDATTA
EASIN ARAFAT
MD.AKRAM
HOSSAIN
YEAKUB
HOSSAIN
MD.RASAD
AMIN
ID NO
B-120203008
B-120203042
B-120203046
B-120203090
B-110203066
Introduction
The services of commercial bank primarily revolve round
mobilization of deposits and lending the same to those needing
finance for their business and other activities. A broader definition
of a bank is any financial institution that receives, collects,
transfers, pays, exchanges, lends, invests, or safeguards money
for its customers.
Commercial bank
Commercial banks specialize in loans of commercial nature
especially short term loans to industries and businesses and
individuals.
Commercial banks are the oldest financial institutions. The
occupy and important position in the financial landscape
of nearly every country.
Objectives
To be a dynamic leader in the financial market in innovating
new products as to the needs of the society.
Vision
To be a modern Bank having the object of building a sound
national economy and to contribute significantly to the Public
Exchequer.
Mission
To be the best private commercial bank in Bangladesh in terms of
efficiency, capital adequacy, asset quality, sound management
and profitability.
1)
2)
3)
4)
5)
6)
CSR Activities
SBL donates crest and cheque to war wounded Freedom
Fighter
SBL donates a cheque at deceased Army Family of
BDR Mutiny.
SBL donates a cheque for Flood Victim people
SBL serves the people setting up a temporary eye
treatment project
Trade Development
The commercial banks provide capital, technical assistance and other facilities to
businessmen according to their need, which leads to development in trade.
Agriculture Development
Commercial banks finance the most important sector of the developing economics
i.e. agriculture, short, medium and long-term loans are provided for the purchase of
seeds and fertilizer, installation of tube wells, construction of warehouses, purchase
of tractor and thresher etc.
Industrial Development
The countries, which concentrated on industrial sector made rapid economic
development. South Korea, Malaysia, Taiwan, Hong Kong and Indonesia have
recently developed their industrial sector with the help of commercial banks.
Capital Formation
Commercial banks help in increasing the rate of capital formation in a country.
Capital formation means increase in number of production units, technology, plant
and machinery. They finance the projects responsible for increasing the rate of
capital formation.
Transfer of Money
Commercial banks provide the facility of transferring funds from one place to
another which leads to the growth of trade.
More Production
A good banking system ensures more production in all sectors of the economy. It
increases the production capabilities of the economy by strengthening capital
structure and division of labor
Development of Transport
The commercial banks financed the transport sector. It has reduced unemployment
on one hand and increased the transport facility on the other hand. Remote areas
are linked to main markets through developed transport system.
Safe Custody
The business concerns and individuals can make themselves tension free by
depositing their surplus money in banks. The banks also provide them the facility of
lockers to keep their precious articles and necessary documents safe.
Increase in Saving
Commercial banks persuade the people to save more. Different saving schemes
with attractive interest rates are introduced for this purpose. Number of bank
branches is opened in urban and rural areas.
Construction of Houses
Commercial banks provide credit facilities to their customers for the purchase or
construction of houses.
Assistance to Government
By providing funds to government for development programs, the commercial
banks share the government for economic stability.
Increase in Employment
A countrys economic prosperity depends on the development of trade, commerce
industry, agriculture, transport and communication etc. These sectors are financed
by the commercial banks and employment opportunities are increasing.
Credit Creation
Commercial banks are called the factories of credit. They advance much more than
what the collect from people in the form of deposits. Through the process of credit
creation, commercial banks provide finance to all sectors of the economy thus
making them more developed than before.
Financial Advices
Commercial banks also give useful financial advices to promote the business of their
customers, besides credit facilities.
Increase in Investment
Commercial banks mobilize savings of the people. They make them available to the
farmers, traders and industrialists for the development of agriculture, trade and
industry.
Economic Prosperity
Economic prosperity of a country depends on number of factors including the
development of commercial banking. A sound banking system promotes the
economic status of the people by providing them short, medium and long-term
loans.
Training Center
Commercial banks established many trading centers for their employees to
modernize the banking system of a country. In this way the banking experts
enhance their abilities and contribute towards the development of country.
Current Deposit
Savings Deposit
Short Term Deposit
Fixed Deposit
Deposits Under Scheme
Relationship/
Applied Interest
Tenure
Less than 1(one)
year
No interest
2000
2500
5000
10000
3 Years
12,3 20,6
1,03,1 2,06,2 4,12,44
41,240 82,470
75
25
00
00
5
5 Years
22,5 37,6
1,50,5 1,88,1 3,76,3 7,52,81
75,245
95
45
10
45
25
5
7 Years
10 Years
4,00,00
50,0 1,00,02,00,03,00,0
0&
00 00
00
00
above
Monthly Interest
400 800
Payable
1,600 2,400
3,200 &
Above
No benefit including interest/profit shall be allowed for premature encashment within 1 (one)
year.
SL
Particulars
Mid Rate
Fixed Rate
01
02
12.00%
-16.50%
SL
Particulars
Fixed
Rate
Mid
Rate
01
7.00%
--
02
--
16.00%
03
--
16.00%
TIN Number.
One Passport Size Photographs of the Nominee(s) attested
by the Account holder.
All photocopies should be verified with the original and attested
by an authorized officer of the Bank.
Islamic
commercial
bank
Conventional
commercial
bank
Business
Functions and
operating modes
are based on
Shariah and Islamic
banks must ensure
that all business
activities are
incompliance with
shariah
requirements.
Functions and
operating modes
are based on
secular principles,
not religious laws
or guidelines.
Framework
Interest
charging
Financing is not
Financing is
interest (Riba)
interest oriented,
oriented and
and a fixed or
should be based on variable interest
risk-and-reward
rate is charged for
sharing.
the use of money
Interest on
deposits
Account holders do
not receive
interest(riba) but
may share risk and
rewards of
investment made
by the Islamic bank
Depositors receives
interest and a
guarantee of
principle payment
Restrictions
Traditional banks
may finance any
lawful product or
service
Zakat
One of the
functions of the
Islamic Banks is to
collect and
distribute zakat.
Traditional banks
do not collects and
pay any religious
tax
Penalty on
default
Traditional banks
normally charge
additional money
(compound
interest) in case of
late payment
Avoidance of
gharar
Transaction with
elements of
gambling or
speculation are
discouraged or
forbidden.
Speculative
investments are
allowed
Customer
The status of a
client is one of
creditor and debtor
Relationship
Shariah
supervisory
Board
Conclusion
The Standard Bank Ltd facilitate payments by means of credit
instruments like cheques, drafts, telegraphic transfers, letters of
credits and other means of payment including credit and debit
cards. Without these services domestic and international trade
could not have possibly progressed much beyond the old system
of barter. In the words of Walter leaf: The banker is the universal
arbiter of the worlds economy.