Introducing a New Food in Australia Assignment Example | Topics and Well Written Essays - 2000 words

Introducing a New Food in Australia - Assignment Example The Australian National Food Safety Standards has the role of labeling food standards to be introduce. In Australian Capital Territory (ACT) the agency responsible for ensuring the safety of food is the Health Protection Service (HPS) of ACT Health. The HPS under its Food Sampling Working Group (FSWG) looks after the development, overall implementation and co-ordination of the Food Survey Program (Program). These government agencies monitor the introduction of new food as well as supply to ensure that it is safe and pose no risk to the consumers. The new food should comply with standards for microbiological contaminants, pesticide residue limits and chemical contamination. Introduction of new food in Australia has to meet all the food surveillance data from public health units in Australia. This data includes the results of compliance testing, and specialty targeted surveys. If the new product is canned food then it comes under the Canned Food Information Service Inc (CFIS Inc) for the promotion and review of the product. The CFIS aims to convince consumers about the foods contained, and to dispel misconceptions and so generate increased purchases. The nutrition programme of CFIS is aimed to create the awareness of the influences of public opinion. After that the authority issue a license only after carrying out a comprehensive risk assessment process so that Australian environment and human health and safety would not be at risk. The national regulatory scheme does not look into the marketing issues of new food. The main objective of the authority is to provide an unambiguous recognition, under Commonwealth law. Nutrition labelling Mandatory nutrition labelling is necessary for the launch of any new food product as it has significant impacts on health in the community. The method of nutrition labelling divided into two steps, first, it identify the risk factors of diet-related disease and study their impact on health systems expenditure and the value of life. Secondly, it estimates the level of reduction in risk factors. Risk factors can be identified through diet-related diseases, which are associated with three risk factors, namely, obesity, hypertension and high blood cholesterol. It is no denying fact that nutrition information greatly influences consumer choice. According to an American study of the impact of the introduction of mandatory nutrition labelling the consumers principally respond to negative nutrition information. Nutrition labelling really boosts the consumer behaviour as it reduces the risk factors. In Australia food products that carry nutrition labels is considered as healthy. A nutritional analysis programme is vital for any new food product to know the size and complexity of the product and a careful assessment of the resources, skills, courage and discipline required to progress the task to completion (Scheelings 1987). The programme is more about data evaluation, which identifies the critical elements of quality assurance. The Nutrition Committee of the National Health and Medical Research Council (NHMRC) has developed work programme for the current revision of the Australian food tables. The work programme is composed of four components: the analytical programme; the processing and validation of food composition data and preparation for publication; the establishment of the Australian Nutrient Data Bank to store and process data; and the development of the

Hobbes VS. Locke VS. Rousseau Essay Example for Free

Hobbes VS. Locke VS. Rousseau Essay â€Å"I am at the point of believing, that my labor will be as useless as the commonwealth of Plato. For Plato, also is of the opinion that it is impossible for the disorders of the state ever to be taken away until sovereigns be philosophers . . . I recover some hope that one time or other this writing of mine may fall into the hands of a sovereign who will consider it for himself, for it is short, and I think clear. † -The Monster of Malmesbury (Thomas Hobbes), Leviathan1 Thomas Hobbes was born at Westport near Malmesbury in Wiltshire, England. 2 A wealthy uncle paid for his education and sent him to Magdalen Hall, Oxford. 3 Hobbes lived at a time of immense intellectual excitement, and the universities of his day were far from being at the cutting-edge of intellectual advance. 4 The Oxford curriculum still consisted largely of scholastic logic and metaphysics, which he regarded as sterile pedantry and for which he had nothing good to say. 5 Leaving university with a degree in scholastic logic and, it has been said, several more degrees of contempt for Aristotle in particular, and universities in general, Hobbes obtained a post as tutor to the Earl of Devonshire. 6 He travelled widely with the Duke, moving in increasingly aristocratic circles and even meeting the celebrated Italian astronomer Galileo, in 1636. 7 Hobbes also met another important figure, Sir Francis Bacon. Francis Bacon was a philosopher who rejected the Aristotelian logic and system, which basically was a speculative system, started out from some major assumptions and through deductions developed his philosophical system. 8 Thomas Hobbes has a more cynical and realistic, view of human nature than the Greeks. 9 Whilst he agrees that people have regard for their self-interest, there is little else Hobbes will accept from the ancients. 10 Hobbes was considered by many of his contemporaries to be, if not actually an atheist, certainly a heretic. 11 Indeed, after the Great Plague of 1666, in which 60,000 Londoners died, and the Great Fire straight afterwards, a parliamentary committee was set up to investigate whether heresy might have contributed to the two disasters. 12 The list of possible causes includes Hobbes’ writings. 13 Hobbes’ books are a strange mixture of jurisprudence, religious enthusiasm, and political iconoclasm. 14 Hobbes’ political theory, then is that of someone who experienced both the English Civil War and the Scientific Revolution of the seventeenth century. 15 This fact is important to our understanding of it. 16 He formulated his political ideas several times, but it is in Leviathan that they find their most complete and influential statement. 17 His approach to politics is self-consciously scientific. 18 His technique of enquiry is delivered partly from the ‘resolutive-compositive’ method associated with Galileo and Bacon, and partly from the deductive reasoning that had so impressed him in Euclid. 19 If we are to arrive at a sound understanding of politics, we must first analyze or resolve social wholes into their smallest component parts: namely, individual human beings. 20 Then, having studied the properties and behavior of those parts in isolation, we can deduce from them, as it were from first principles, rational conclusions about social and political organization. 21 He breaks down (by analysis) social phenomena into their basic constituents, and only then synthesizes these to produce a new theory. 22 It is this technique, as much as his theory of power as the motivating spring of mankind, that makes Hobbes a distinctly modern thinker. 23 His materialism is central to his account of human behavior. 24 The body of each human being is, he thinks, only a complex mechanism, somewhat like a clock. 25 Hobbes has a mechanistic Weltanschauung. We are bodies in constant motion. 26 He seems in other words, to have a kind of materialistic psychology in which human behavior exhibits the same, as it were, mechanical tendencies as billiard balls that can be understood as obeying, again, geometric or causal processes of cause and effect. 27 Before we proceed to his account of the state of nature, we will explore first some of his important ideas. First, is his skeptical view of knowledge. Hobbes was obsessed with the question about what can I know or, maybe put a different way, what am I entitled to believe, and there are many passages in Leviathan that testify to Hobbes’ fundamentally skeptical view of knowledge. 28 He is a skeptic not because he believes that we can have no foundations for our beliefs, but he is skeptic in the sense that there can be no, on his view, transcendent of nonhuman foundations for our beliefs. 29 We cannot be certain, he thinks, of the ultimate foundations of our knowledge and this explains you may have wondered about this, this explains the importance he attributes to such things as naming and attaching correct definitions to things. 30 Knowledge, in other words, is for Hobbes a human construction and it is always subject to what human beings can be made to agree upon and that skeptical view of knowledge or at least skeptical view of the foundation of knowledge has far reaching consequences for him. 31 This argument of Hobbes resembles the thesis of Berger and Luckmann’s book. The ongoing process of objectivation-externalization-internalization to construct, reconstruct, and deconstruct the world. In other words, knowledge and human reality is ‘socially constructed’. 32 If all knowledge, according to Hobbes, ultimately rests on agreement about shared terms, he infers from that our reason, our rationality, has no share in what Plato or Aristotle would have called the divine Noos, the divine intelligence. 33 Our reason does not testify to some kind of inner voice of conscience or anything that would purport to give it some kind of indubitable foundation. 34 Such certainty as we have about anything is for Hobbes always provisional, discovered on the basis of experience and subject to continual revision in the light of further experience, and that again experiential conception of knowledge. 35 Next, is his idea of the laws of nature. Fear is the basis, even of what Hobbes called the various laws of nature. 36 The laws of nature for Hobbes are described as a precept or a general rule of reason that every man ought to endeavor peace and it is out of fear that we begin to reason and see the advantages of society; reason is dependent upon the passions, upon fear. 37 The natural laws for Hobbes are not divine commands or ordinances, he says, but they are rules of practical reason figured out by us as the optimal means of securing our well-being. 38 Ignorance of the law of nature is no excuse. 39 According to Prof. Bacale-Ocampo LlB, there are two doctrines of the natural law: everyone must seek peace and follow it, and man being able, if others were too. 40 Hobbes also said that there can be no unjust laws. There are two reasons for this proposition, according to Prof. Bacale-Ocampo LlB: law precedes justice, and the sovereign is the embodiment of all the people’s rights. 41 This argument justifies Hobbes’ defense of the absolute and authoritarian power of his sovereign. The power of the sovereign, Hobbes continually insists, must be unlimited. 42 This notion also resembles Art. XVI, Sec. III of the 1987 Philippine Constitution, that, â€Å"The State may not be sued without its consent. † In a very real sense, a suit against the State by its citizens is, in effect, a suit against the rest of the people represented by their common government – an anomalous and absurd situation indeed. 43 Now, let’s go to his notion of the state of nature. The state of nature, a shocking phrase calculated to arouse the wrath of the Church, directly conflicting with the rosy biblical image of Adam and Eve in the Garden of Eden before the Fall. 44 Hobbes thinks the ‘human machine’ is programmed to direct its energies selfishly. 45 He doubts if it is ever possible for human beings to act altruistically, and even apparently benevolent action is actually self-serving, perhaps an attempt to make them feel good about themselves. 46 Hobbes tells us, â€Å". . . in the first place, I put for a general inclination of all mankind, a perpetual and restless desire of Power after Power, that ceaseth only in Death. †47 The desire for power is the cause of human strife and conflict. 48 Finally, Hobbes most quoted statement, that in the state of nature, â€Å". . . there is no place for Industry; because the fruit thereof is uncertain: and consequently no Culture of the Earth; no Navigation, nor use of the Commodities that may be imported by Sea; no Commodious Building; no instruments of moving, and removing such things as require much force; no knowledge of the face of the Earth; no account of Time; no Arts; no Letters; no Society; and which is worst of all, continual fear, and danger of violent death; And the life of man, solitary, poor, nasty, brutish, and short. †49 The state of nature is simply a kind of condition of maximum insecurity. 50 Hobbes continues, â€Å"Hereby it is manifest, that during the time men live without a common power to keep them all in awe, they are in that condition which is called War; and such a War, as is of every man against every man . . . the nature of war, consisteth not in actual fighting; but in the known disposition thereto, during all the time there is no assurance to the contrary. †51 There are three principle causes of quarrel. The first is competition, for gain; the second is diffidence and a compulsion for safety; whilst the final one is the compulsion for glory, and for reputation. 52 Yet they all precipitate violence. 53 Hobbes tells us, â€Å"The first use violence, to make themselves Masters of other men’s persons, wives, children, and cattle; the second, to defend them; the third, for trifles, as a word, a smile, a different opinion, and any other sign of undervalue either direct in their Persons, or by reflection in their Kindred, their Friends, their Nation, their Profession, or their Name. †54 Hobbes also asks the readers, â€Å"Let him, the reader, therefore ask himself, when taking a journey he arms himself and seeks to go well accompanied. When going to sleep, he locks his doors even when in his house, and even when in his house he locks his chest and this, when he know, he says, there be laws and public officers armed to avenge all injuries shall be done to him . . . Does he not therefore as much accuse mankind by his action as I do by my words? †55 In short, the members of the Hobbesian state of nature employs the classic prisoner’s dilemma. The strategic interests of the two individuals are antithetical to each other, and that keeps them from forming a social solidarity that would be best for them altogether. 56 The prisoner’s dilemma is analogous to a social world in which public goods would be quite valuable to have, but in which individuals would lose something from contributing to the public good as long as other people do not. 57 There has to be an assurance that the other side will live up to the bargain; but there is no way of knowing that, and in fact one can figure out that other people will act just like oneself. 58 Whether one assumes that the other person is ultimately selfish, or merely distrusting, the outcome is the same. 59 Rational selfish individuals dealing with other rational selfish individuals will never sacrifice anything to the public good, since it would be a waste. 60 That is what makes the situation a dilemma. 61 Hobbes constructed his state of nature, using logic, not using historical data. The state of nature, for him, is rather a kind of thought experiment after the manner of experimental science. 62 Hobbes is the, again, the great founder of what we might call, among others, is the experimental method in social and political science. 63 How can we escape the horror of the Hobbesian state of nature? By establishing a sovereign by means of a social contract. He would understand (1) that it is rationally necessary to seek peace; (2) that the way to secure peace is to enter into an agreement with others not to harm one another; and (3) that having entered into such an agreement, it would be irrational, in the sense of self-defeating, to break it for as long as the others kept it. 64 By this chain of reasoning, society would be created. 65 It would be created by an agreement – a ‘compact’, as Hobbes calls it – made by individuals no one of whom has interest in anyone else’s good per se, but each of whom realizes that his own good can be secured only by agreeing not to harm others in return for their agreement not to harm him. 66 But, there must be an enforcer, because Hobbes argues that, â€Å"Covenants without the sword are but words, and of no strength to secure a man at all. †67 So the people will have to, â€Å"Confer all power and strength upon one Man, or upon one assembly of men, that may reduce all their wills, by plurality of voices, unto one Will . . . This is more than Consent, or Concord; it is a real Unity of them all, in one and the same Person, made by Covenant of every man with every man . . . that Great Leviathan, the Commonwealth, and it comes about when either one man by War subdueth his enemies to his will, or when men agree amongst themselves, to submit to some Man, or Assembly of men, voluntarily, on confidence to be protected by him against all others. †68 The sovereign is created by, but not a party to, the compact. 69 He therefore cannot be got rid of because he is in reach of the compact. 70 If he could be, his power would not, after all, be sovereign. 71 Hobbes remains one of the most impressive and influential of English political theorists. 72 He is also, though he several times twits himself on his own timidity, a writer of considerable intellectual courage, who expressed unpopular views at a time when it was dangerous – mortally dangerous, indeed to do so. 73 He also â€Å"provides an antidote to the high-minded reasoning of the schoolmen and indeed the Ancients. †74 Starting from a pragmatic assessment of human nature, he strengthens the case for a powerful political and social apparatus organizing our lives. 75 And with his interest in the methods of geometry and the natural sciences, he brings a new style of argument to political theorizing that is both more persuasive and more effective. 76 But from Hobbes we also obtain a reminder that social organization, however committed to fairness and equality it may be intended to be, being motivated by a struggle between its members, is also inevitably both authoritarian and inegalitarian. 77 Virtually all subsequent attempts to treat politics and political behavior philosophically have in some sense had to take Hobbes into account. 78 â€Å"Though the water running in the fountain be everyone’s, yet who can doubt but that in the pitcher is his only who drew it out? † -John Locke, Second Treatise79 John Locke was born into a Puritan family in Somerset, England. 80 His father was a country lawyer who raised a troop of horse and fought on the parliamentary side in the Civil War. 81 Locke went up to Christ Church, Oxford, in 1652. 82 Like Hobbes before him, Locke found the old fashioned Scholastic curriculum uncongenial, though his association with Christ Church was to last, with interruptions, for more than thirty years. 83 He became a senior student – that is, a Fellow – in 1659. 84 In 1667 he became medical adviser and general factotum of Anthony Ashley Cooper, created first Earl of Shaftesbury in 1672. 85 When Shaftesbury was appointed Lord Chancellor in 1672, Locke became his secretary. 86 Earl Shaftesbury went on to three notable political achievements: he led the opposition to Charles II, he founded the Whig Party, the forerunner of the Liberals, and he pushed Locke into politics. 87 John Locke is a kind of ‘lowest common denominator’ of political philosophy, the intellectual forebear of much of today’s political orthodoxy, a role that befits a thinker of a naturally orthodox turn of mind. 88 He also â€Å"fitted the times very well (Bertrand Russell even described him as the ‘apostle of the Revolution of 1688’). 89 His philosophy was actively adopted by contemporary politicians and thinkers; his influence was transmitted to eighteenth-century France through the medium of Voltaire’s writings, and inspired the principles of the French Revolution. 90 And his views would spread still more widely, through the writings of Thomas Paine, eventually shaping the American Revolution too. 91 Although Locke’s reputation as a philosopher rests almost entirely on the epistemological doctrines expressed in An Essay Concerning Human Understanding, he made a great and lasting contribution to political thought. 92 This contribution consists mainly in his Two Treatises of Government, especially in the Second Treatise. 93 It is usual to regard the First Treatise as being mainly of antiquarian interest. 94 It is in the Second Treatise that Locke presents his own ideas. 95 The proper title of the treatise is ‘An Essay Concerning the True, Original, Extent, and End of Civil Government. ’96 The master of Locke’s own residential college at Oxford, Balliol College, described Mr. Locke as the ‘master of taciturnity’, because he could not discover, through questioning and so on, Locke’s opinions on religious and political matters. 97 Before we proceed to his notion of the state of nature, we will first explore some of his major ideas. First is his account of the law of nature. There is no modern thinker that I’m aware of who makes natural law as important to his doctrine as does Locke. 98 The law of nature, Locke tells us, â€Å"willeth the peace and preservation of all mankind. †99 Locke adds, the â€Å"law of nature . . . obliges everyone; and reason which is that law, teaches all mankind who will but consult it, that being all equal and independent, no one ought to harm another in his life, health, liberty, or possessions. †100 Locke also offers the three fundamental rights: life, health, and property. These three rights can never be overruled even by the government. They are also our natural rights, they are pre-political, it means that they are already our rights even before the establishment of the government. The interesting thing about these fundamental rights is that it is paradoxical. There are two reasons for this paradox. The first is that, â€Å"our rights are less fully mine. †101 Our rights were given by God. Locke tells us, â€Å"For men, being all the workmanship of one Omnipotent and Infinitely Wise Maker, they are his property whose workmanship they are, made to last during his, not one another’s pleasure. †102 The second reason is that, â€Å"because our rights are unalienable, they are more deeply mine. †103 These three Lockean fundamental rights influenced the famous 1776 U. S. Declaration of Independence, â€Å"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty, and the pursuit of happiness. †104 It’s like the ghost of John Locke who wrote this declaration, not Thomas Jefferson. Every sentence of this declaration has something like a Lockean spirit or fingerprint. This Lockean principle also influenced our present Constitution. Art. III, Sec. I of the 1987 Constitution states that, â€Å"No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the laws. †105 Next, his theory of private property. Locke’s â€Å"account of property; certainly, in many ways, one of the most characteristic doctrines of Lockean political thought. †106 In the beginning the whole world was America, explains Locke, meaning that the world was an unexploited wilderness, before, through the efforts of people, there came farms and manufactures and buildings and cities. 107 With these come trade, and money. 108 But although property is the foundation of political society, Locke traces its origin back not to commerce, but to ‘the conjugal union. ’109 The first society was between man and wife, and later their children. 110 Locke’s view of human nature is that we are very much the property-acquiring animal. 111 Locke tells us, â€Å"Every man has a property in his own person, this nobody has any right to but himself. The labor of his body and the work of his hands, we may say are properly his. †112 This is one of the major premises of Robert Nozick and other libertarian thinkers, that we own ourselves. Locke continues, â€Å"Whatsoever then he removes out of that state of nature has provided and left it in, he has mixed his labor with, and joined to it something that in his own and thereby makes it his property. †113 Locke anticipates Marx’s Labor Theory of Value. Locke continues, â€Å"For this labor being the unquestionable property of the laborer no man but he can hence a right, to what that is once joined to, at least where there is enough and as good left in common for others. †114 Locke adds, â€Å"As much land as a man tills, plants, improves, cultivates and can use the product of, so much is his property. He by his labor, does as it were, enclose it from the common. †115 One of the most famous passages in the Second Treatise is that, â€Å"God gave the world to men in common, but since He gave it to them for their benefit and the greatest conveniences of life that they were capable to draw from it . . . it cannot be supposed He meant it should always remain common and uncultivated. He gave it to the use of the industrious and the rational and not to the fancy or covetousness of the quarrelsome and contentious. †116 Locke seems to suggest, that the state will be a commercial state, that the Lockean republic, the Lockean state will be a commercial republic. 117 Labor becomes, for Locke, his source of all value and our title to common ownership and in a remarkable rhetorical series of shifts, he makes not nature, but rather human labor and acquisition the source of property and of unlimited material possessions. 118 The new politics of the Lockean state will no longer be concerned with glory, honor, thumos, virtue, but Lockean politics will be sober, will be pedestrian, it will be hedonistic, without sublimity or joy. 119 Locke is the author of the doctrine that commerce softens manners, that it makes us less warlike, that it makes us civilized. 120 On the ground of Locke’s claim of self-ownership as the foundation of rights and justice, I will offer one of the major criticisms to this view. This is the ‘difference principle’ of one of my favorite political philosophers, John Rawls. First, â€Å"Lockean theory of justice, broadly speaking, supports a meritocracy sometimes referred to as ‘equality of opportunity’, that is, what a person does with his or her natural assets belongs exclusively to him, the right to rise or fall belongs exclusively to him. †121 Rawls’ principle â€Å"maintains that our natural endowments, our talents, our abilities, our family backgrounds, our history, our unique histories, our place, so to speak, in the social hierarchy, all of these things are from a moral point of view something completely arbitrary. 122 None of these are ours in any strong sense of the term. 123 They do not belong to us but are the result of a more or less kind of random or arbitrary genetic lottery or social lottery of which I or you happen to be the unique beficiaries. 124 No longer can I be regarded as the sole proprietor of my assets or the unique recipient of the advantages or disadvantages I may accrue from them. 125 Rawls concludes, I should not be regarded as a possessor but merely the recipient of what talents, capacities, and abilities that I may, again, purely arbitrary happen to possess. 126 The difference principle is a principle for institutions, not for individuals. 127 This is not to say that the difference principle does not imply duties for individuals – it creates innumerable duties for them. 128 It means rather that the difference principle applies in the first instance to regulate economic conventions and legal institutions, such as the market mechanism, the system of property, contract, inheritance, securities, taxation, and so on. 129 The direct application of the difference principle to structure economic institutions and its indirect application to individual conduct, exhibit what Rawls means when he says that the ‘primary subject of justice is the basic structure of society. ’130 The basic structure of society consists of the arrangement of the political, social, and economic institutions that make social cooperation possible and productive. 131 These institutions have a profound influence on individuals’ everyday lives, their characters, desires, and ambitions, as well as their future prospects. 132 The difference principle also â€Å"requires that economic institutions be designed so that the least advantaged class enjoys a greater share of income, wealth, and economic powers more generally, than it would under any other economic arrangement (with the important qualification that the final distribution is compatible with equal basic liberties and fair equal opportunities). 133 We should follow the principle that would be chose under ideal conditions not because it is rational for us to use such a procedure (in the narrow sense of rationality), and not because doing so would maximize total overall utility, but because doing so embodies fundamental values to which Rawls thinks, we are already committed, the values of freedom and equality. 134 In structuring a just society, we must also employ what Rawls called ‘the veil of ignorance’. The situation where you don’t know who you will be. 135 Using the DP and the veil of ignorance, we can assure that the cake will be sliced equally. There are other important Lockean ideas, that I wish to address, but for the main reason of limiting my paper, I won’t discuss them anymore. These important ideas are the Lockean idea of a limited government (which resembles our present form of government), his ‘Appeal to Heaven’ doctrine or the right of the people to rebel against an unjust government (this doctrine is also embodied in the Art. II, Sec. I, of the 1987 Constitution), and his famous doctrine of consent. Now, let’s proceed to the Lockean version of the state of nature. Like Hobbes, Locke makes use of the idea of a state of nature as an explanatory conceit which to build his political theory. 136 As with Hobbes, and despite some ambiguity of language, the argument is not really a historical one. 137 Locke does not take Hobbes’ pessimistic view of how ungoverned human beings would behave in relation to each other. 138 Unlike Hobbes, he does not depict the state of nature as an intolerable condition in which the amenities of civilization are impossible. 139 The drawbacks of Locke’s state of nature would be no worse than ‘inconveniences’. 140 The ‘continous inconveniences’ is that men in the state of nature were both the judge and executor of the law of nature. Locke tells us, â€Å"The execution of the law of nature is, in that state, put into every man’s hands, whereby everyone has a right to punish the transgressor of that law to such a degree as may hinder its violation. †141 Everyone can enforce the law of nature. Locke adds, â€Å"One may destroy a man who makes war upon him . . . for the same reason that he may kill a wolf or a lion; because such man . . . have no other rule, but that of force and violence, and he may be treated as beasts of prey, those dangerous and noxious creatures, that will be sure to destroy the, whenever he feels into their power. †142 How can we escape the ‘inconveniences’ of Locke’s state of nature? Civil government is the proper remedy for the inconveniences of the state of nature. 143 Just like his great predecessor Hobbes, we must mutually agree to give up our enforcement power by means of a social contract. Locke tells us, â€Å"Men being, as has been said, by nature, all free and equal and independent, no one can be put out of this estate, and subjected to the political power of another, without his own consent . . . when any number of men have, by the consent of every individual, made a community, they have thereby made that community one body, with a power to act as one body, which is only by the will and determination of the majority . . . to move . . . whither the greater force carries it. †144 Locke has no particular view about the form of government should take, as long as it is based on popular consent. 145 It may be a republic, but it could be an oligarchy and there might still be a monarch. 146 But whatever form the government takes, Locke says, it does need to include some ‘separation of powers’, and sets out fairly precisely the distinction to be made between the law-making part of government – the legislature – and the action-taking part – the executive. 147 The executive must have the power to appoint and dismiss the legislature, but it does not make the one superior to the other, rather there exists a ‘fiduciary trust’. 148 According to Locke’s view of government, there are only two parties to the trust: the people, who is both trustor and beneficiary, and the legislature, who is trustee. 149 The principal characteristic of a trust is the fact that the trustee assumes primarily obligations rather than rights. 150 The purpose of the trust is determined by the interest of the beneficiary and not by the will of the trustee. 151 The trustee is little more than a servant of both trustor and beneficiary, and he may be recalled by the trustor in the event of neglect of duty. 152 Locke also tells us that, â€Å"The great and chief end, therefore, of men’s uniting into commonwealths and putting themselves under government is the preservation of their property. †153 Property here is the general term for life, liberty, and estates or possessions. This Lockean idea is also embodied in the famous The Federalist No. 10 of James Madison, â€Å"The diversity in the faculties of men from which the rights of property originate, is not less an insuperable obstacle to a uniformity of interests. The protection of these faculties is the first object of government. †154 Locke – jointly, perhaps, with Hobbes – is the most influential of all English political theorist. 155 His political writing, like all political writing, is a response to the issues and events of a specific time and place, and reflects a particular perception of those issues and events. 156 Locke creates a picture of the world in which ‘rationality’ is the ultimate authority, not God, and certainly not, as Hobbes had insisted brute force. 157 He insists that people have certain fundamental rights and also attempt to return the other half of the human race, the female part, to their proper, equal, place in history, the family and government. 158 Locke’s legacy is the first, essentially practical, even legalistic, framework and analysis of the workings of society. 159 That is his own particular contribution to its evolution. 160 â€Å"Man is born free; and everywhere he is in chains. † -the citizen of Geneva (Jean-Jacques Rousseau), The Social Contract161. Rousseau was born in Geneva in 1712, the son of a Calvinist watchmaker. 162 It was his father who brought him up, his mother having died in childbirth. 163 His father also gave Rousseau a great love of books, but otherwise he had little formal education. 164 At the age of fifteen he ran away from home and began a life of solitary wandering. 165 His was a difficult, hypersensitive personality, with a towering sense of his own genius. 166 Although capable of intense friendship, his relationships never lasted. 167 After leaving Switzerland, Rousseau lived in Savoy and worked in Italy, before gravitating to Paris, at the time the leading intellectual centre in Europe. 168 There he associated with the Enlightenment thinkers – the philosophes – and particularly Diderot. 169 Rousseau contributed articles (mainly on musicology) to their great project, the Encyclopedia, but although he subscribed to some of their beliefs he was never a committed member of the group. 170 He developed his own ideas that differed radically from their fashionable cult of reason and from establishment orthodoxy. 171 Indeed, Rousseau’s most striking characteristic is his originality. 172 He changed the thinking of Europe, having an impact on political theory, education, literature, ethics, ideas about the self and its relationship to nature, and much else. 173 These influences, together with his elevation of emotion and will above reason, make him the major precursor of the Romantic movement. 174 His early ‘Discourses’ offended the philosophes, while his two most famous works, Emile and The Social Contract (both 1762), outraged the authorities, particularly because of their.

The Attitude of Howard Hughes :: Inventors

Although Howard Hughes had a very cocky attitude, he did what he needed to do to finish his life goals: "Things I want to be 1. The best golfer in the world. 2. The best flyer pilot. 3. the most famous producer of moving pictures." Goals written on the back of a receipt (p55) His attitude was so impressive that it led to a major contribution in the world of aviation. The steps that he took, not listening to people say that he cannot do it, great secrecy, the need for perfection, and he does what ever is necessary to get the job done, that along side of his Texan attitude would lead to one of the greatest achievements in aviation. This great achievement was that of pressurized cabins which led to being able to fly higher and faster, thus cutting down travel time and expenses. Howard Hughes?s attitude was astounding, a quote from him which reads ?Bob, please read the attached article. It refers to me as a millionaire, while others have called me a billionaire. I?m very concerned about this change in perception and the effect it will have on our businesses? (Richard Hack P xi). This is showing how great of an attitude he has if he can be so picky that he worries about if people view him as a millionaire rather than a billionaire. When Hughes had something to tell someone he had no problem with worrying about what they would think about it, or who that person is. When Howard said ?I am a little tired of being pushed around and intimidated by Senators Brewster and Ferguson just because they have some very strong powers which are granted to all Senators but which were not intended to be misused for the promotion of a three-ring publicity circus.? (P159) This shows that Hughes obviously did not care if he was talking about senators talking down on him or just a normal person. He just does not care who they are- he will not take it. We all know that Howard had money because of his great attitude, ?While the rest of America was having trouble placing food on the table, Hughes felt the effect only when he decided to buy a new plane, and was told that he needed to pay for his purchase with cash.? This shows how rich he was, but more importantly it shows that he can be very cocky about it.

Joseph Stalin

Spiritual Seminary, which trained him to be a priest. While he was there, he s secretly became infatuated with reading the work of Karl Marx, â€Å"Communist Manifesto. † Josef interest steadily increased, and in 1 899 he claimed he was expelled from the Seminary for Mar exist Propaganda. After Stalin left the school, he joined the militant Bolshevik wing of the Marxism t Social Democratic movement, which was led by Vladimir Lenin. Stalin became an UN detergent political revolutionary who took part in strikes, propaganda distribution, bank heists, and ordered assassinations.He was arrested multiple times and was ultimately ex lied to, and imprisoned in, Siberia. He escaped often times, and was moved up in the rank s of the Bolsheviks. Josef married his first wife, Catering Spavined, in 1906. She died of typhus in 1907, shortly after their son, Yak, was born. Yak died in 1943 as a prisoner of G errand In World War II. Stalin's second wife, Endeared Alluvial, was a daughter of a non there Russian Revolutionary with whom he had several children. This marriage did not last Eng though, ad Endeared committed suicide a few years later.In 1 912 Vladimir Lenin, who was exiled in Switzerland, appointed Stalin to seer eve on the first Central Committee of the Bolshevik Party. The Bolsheviks seized Russ IA in 1917 and was made the Soviet Union in 1922. Lenin was the first leader of the Soviets, a ND by this point Stalin became secretary general of the Central Committee of the Communist Party, with which he gained political support. In 1924, Lenin died and Stalin won a power struggle against Nikolas Buchanan, Level Kinsmen, Alexei Rooky, Mikhail Tomboy, Leon Trotsky, a ND Gregory Genevieve.By the late 1 sass, Stalin was in control of the Communist Party and was the dictator of the Soviet Union. The Soviet Union underwent several longtime plans launched by Stalin to tar misinform it from a overstocking country to an industrial giant. He insisted on a govern interconnec ted economy and on the government taking control farms. Citizens who refuse d to comply with Josephs orders were brutally murdered or exiled. Millions of people died of FAA mine because of the agriculture control. Stalin ruled by striking terror in citizens and possible opponents.He set up a s secret police and encouraged citizens to spy on one another in order to eliminate an Y possible uprising or opposition. Millions Of people were forced into labor or killed if Joss pep considered them a threat. Joseph essentially built a cult around himself by renaming cite s in his honor, having textbooks rewritten to promote him, and tying himself into the Soviet's culture. In 1 939, Joseph Stalin and Doll Hitler signed a nonaggression pact. Stalin the annexed many countries, including Poland, Romania, Estonia, Latvia, Finland and Lithuania.Stalin was warned by America, Britain, and the KGB about a possible break of the Insensitive pact, but chose to ignore the advice. In 1 941, the Nazis inv aded the USSR and approached the capital, Moscow. Stalin ordered any supplies that could be beneficial to the e enemy to be destroyed. In 1 942, the Soviet Army defeated the Germans at the Battle Of SST Leningrad and drove them out of Russia. After this, Stalin took part in conferences with the A Lies. Although Stalin was a loyal ally in WI, he did not abandon the idea of a Com monist empire. Joseph Stalin Spiritual Seminary, which trained him to be a priest. While he was there, he s secretly became infatuated with reading the work of Karl Marx, â€Å"Communist Manifesto. † Josef interest steadily increased, and in 1 899 he claimed he was expelled from the Seminary for Mar exist Propaganda. After Stalin left the school, he joined the militant Bolshevik wing of the Marxism t Social Democratic movement, which was led by Vladimir Lenin. Stalin became an UN detergent political revolutionary who took part in strikes, propaganda distribution, bank heists, and ordered assassinations.He was arrested multiple times and was ultimately ex lied to, and imprisoned in, Siberia. He escaped often times, and was moved up in the rank s of the Bolsheviks. Josef married his first wife, Catering Spavined, in 1906. She died of typhus in 1907, shortly after their son, Yak, was born. Yak died in 1943 as a prisoner of G errand In World War II. Stalin's second wife, Endeared Alluvial, was a daughter of a non there Russian Revolutionary with whom he had several children. This marriage did not last Eng though, ad Endeared committed suicide a few years later.In 1 912 Vladimir Lenin, who was exiled in Switzerland, appointed Stalin to seer eve on the first Central Committee of the Bolshevik Party. The Bolsheviks seized Russ IA in 1917 and was made the Soviet Union in 1922. Lenin was the first leader of the Soviets, a ND by this point Stalin became secretary general of the Central Committee of the Communist Party, with which he gained political support. In 1924, Lenin died and Stalin won a power struggle against Nikolas Buchanan, Level Kinsmen, Alexei Rooky, Mikhail Tomboy, Leon Trotsky, a ND Gregory Genevieve.By the late 1 sass, Stalin was in control of the Communist Party and was the dictator of the Soviet Union. The Soviet Union underwent several longtime plans launched by Stalin to tar misinform it from a overstocking country to an industrial giant. He insisted on a govern interconnec ted economy and on the government taking control farms. Citizens who refuse d to comply with Josephs orders were brutally murdered or exiled. Millions of people died of FAA mine because of the agriculture control. Stalin ruled by striking terror in citizens and possible opponents.He set up a s secret police and encouraged citizens to spy on one another in order to eliminate an Y possible uprising or opposition. Millions Of people were forced into labor or killed if Joss pep considered them a threat. Joseph essentially built a cult around himself by renaming cite s in his honor, having textbooks rewritten to promote him, and tying himself into the Soviet's culture. In 1 939, Joseph Stalin and Doll Hitler signed a nonaggression pact. Stalin the annexed many countries, including Poland, Romania, Estonia, Latvia, Finland and Lithuania.Stalin was warned by America, Britain, and the KGB about a possible break of the Insensitive pact, but chose to ignore the advice. In 1 941, the Nazis inv aded the USSR and approached the capital, Moscow. Stalin ordered any supplies that could be beneficial to the e enemy to be destroyed. In 1 942, the Soviet Army defeated the Germans at the Battle Of SST Leningrad and drove them out of Russia. After this, Stalin took part in conferences with the A Lies. Although Stalin was a loyal ally in WI, he did not abandon the idea of a Com monist empire.

Internship Report on Banking Business Activities of Mercantile Bank Limited, Satmasjid Road Branch Dhaka.

Internship Report On BANKING BUSINESS ACTIVITIES OF MERCANTILE BANK LIMITED, SATMASJID ROAD BRANCH DHAKA. [pic] Submission Date: 15th November, 2009 Prepared for: Prof. Md. Ashraf Hossain Dean, School Of Business Asian University of Bangladesh Dhanmondi Complex House 36, Road 27 (Old), 16 (New) Dhanmondi R/A, Dhaka-1209 [pic] Prepared By: JOBYDA JESMIN ID: 200521050 Batch: 24th Section: Finance Program: BBA Dhanmondi Complex Asian University of Bangladesh Letter of Transmittal 15th November, 2009 Prof. Md. Ashraf Hossain Dean, School of Business Asian University of Bangladesh Subject: Submission of Internship Report. Sir, It’s my great pleasure to submit the Internship report titled â€Å"Banking Business Activities of Mercantile Bank Limited† that you have asked me to prepare as a partial fulfillment of my graduation. I have tried my best during three months working period to follow the instruction of you in preparing this report. Throughout the report I tried to demonstrate the available services matter of this branch of Mercantile Bank Limited. Finally, I would like to thank you for your valuable guidance and advice for preparing this report. I thereby strongly hope and believe that you would be kind enough to accept this report and give me a pleasure to be obliged. Thanking for your time and reviews. Sincerely Yours, JOBYDA JESMIN ID: 200521050 Batch: 24th Section: Finance Program: BBA Dhanmondi Complex Asian University of Bangladesh Acknowledgement First of all I would like to express my deep gratitude to the almighty Allah for preparing this internship report successfully. Internship is the part of the Bachelor of Business Administration (B. B. A. ) program that provides on the job experience for the students. The students get chance to work closely with the people of the organization and learn about the functions, responsibility and the environment of the organization. The internship program enables a student to develop their analytical skills and scholastic aptitudes and to have a real-life orientation of the academic knowledge. I express my deep gratefulness to Mr. Md. Sadruzzaman, Executive Vice President, for his kind permission to allow me for three months practical orientation in Mercantile Bank. My special gratitude goes to Mr. Shamim Ahmed, Senior Vice-President & Manager of Mercantile Bank Ltd, Satmasjid Road Branch, for his modern outlook and meticulous supervision to carry out the job perfectly. I am very grateful to Mr. Mamun Hossain, Executive Officer, for helping me a lot. Moreover I am very much thankful to my internship in-charge in various departments and all the officers of Mercantile Bank Ltd of Satmasjid Road Branch for helping me very much although having their busyness. Without their help and friendly cooperation it could be very much difficult for me to complete the report in time. So again I want to express my gratitude to all of them. Acronyms |MBL |= |Mercantile Bank Ltd. | |AD |= |Authorize Dealer | |PO |= |Pay Order | |A/C |= |Account | |CDS |= |Central Depository System | |DD |= |Demand Draft |ERC |= |Export Registration Certificate | |FDBC |= |Foreign Documentary Bills For Collection | |OBC |= |Outward Bills for collection | |IBC |= |Inward Bills for Collection | |GDP |= |Gross Domestic Product | |TT |= |Telegraphy Transfer | |L/C |= |Letter Of Credit | |BR |= |Bankers Report | |IBCA |= |Inter branch credit advice | |IBDA |= |Inter Branch Debit Advice | |IMF |= |International Monitory Fund | |IRC |= |Import Registration Certificate | |KYC |= |Know Your Customer | |CCI & E |= |Chief Controller Of Import & Export | |LDBP |= |Local Documentary Bills Purchases | |FC |= |Foreign Currency | |TIN |= |Tax Identification Number | |LCAF |= |Letter of Credit Authorization Form | |BTB |= |Back to Back | |FDBC |= |Foreign Document Bill Collection | |SWIFT | = |Society For Worldwide Inter Bank Financial Telecommunication | |FDBP |= |Foreign Documentary Bill Purchased | Executive Summery This is an internship report based on the internship program took place in Mercantile Bank Ltd, Satmasjid Road Branch, The main objective of this report is to analyze the Banking Business Activities and performance of Mercantile Bank Ltd. I got only three months to gather practical knowledge from this branch, although it was too difficult to gather maximum and proper knowledge within this short range of time. There is a great supportive role of banking system in human society. It plays a vital role for the economic development of a country. Banks are financial-service firms, producing and selling professional management of the public's funds as well as performing many other roles in the economy. The study was to analyze Banking Business Activities of Mercantile Bank Ltd, Satmasjid Road Branch especially: ? General banking ? Foreign Exchange and remittance Credit & Advance department Firstly, I worked for one month in General Banking. During this period I tried my best to cover most o f the basic stuffs. Clearing section was important part to focus on. There were other sections such as Account opening section, Computer section, Cash counter section. Second month I worked in the Loan and Advance sector. And I tried my best to understand what to deal about, what to think about when approaching for any loan proposal. In the final days, I was in Foreign Exchange department. There I was involved in learning the Import LC, Export LC, the operation of back to back LC, Lodgment & settlement of LC, IBP & FBP etc. Most of all I tried heart & soul to present all that I have learnt & thought to be comprehensive to me. Though a short time I got to be introduced with all the activities of bank but I tried my best to give full of me in the practical orientation in bank as well as in the report writing. TABLE OF CONTENTS Chapter One Introduction Page No. 1. 1 Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 11 1. 2 Background of the Study†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦.. 12 1. 3 Rational of the Report†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦. 12 1. 4 Object ives of the Report †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦13 1. 5 Methodology †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 14 1. 6 Scope of the report †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 15 1. 7 Limitations of the Study†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5 Chapter Two Overview of Mercantile Bank Ltd. 2. 1 Banking sector in Bangladesh †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17 2. 2 Historical background of MBL †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 18 2. 3 Vision Mission & objectives of MBL†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦20 2. 4 Core values†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 21 2. 5 Management aspect of MBL†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 22 2. 6 Divisional aspect of MBL†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 23 2. 7 Branch Network†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 24 2. 8 Information about the Satmasjid Road Branch†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 26 2. 9 Financial Performance of MBL†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 27 2. 10 Nature of Business†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦28 2. 1 Financial Products and Services of MBL†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 29 2. 12 Credit Policy of MBL†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 33 Chapter Three General Banking Activities 3. 1 Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 35 3. 2 Account Opening†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 36 3. 3 Different Types of Scheme and Features†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 39 3. 4 Cash Department†¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦45 3. 5 Clearing House†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 46 3. 6 Issuing PO, DD, TT †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 47 3. 7 Dispatch†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 7 3. 8 Issuing Cheque†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 48 3. 9 Closing of an Account†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦49 Chapter Four Foreign Exchange Department 4. 1 Introduction †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 52 4. 3 Letter of Credit (L/C) †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 53 4. 4 Parties to Letter of Credit†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 54 4. 5 Import Procedures†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 57 4. 6 Requirements of an importer to open an L/C †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 58 4. 7 Lodgment of Import Document†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 62 4. 8 Export Section†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 65 4. Back to Back L/C †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 66 4. 10 Documents required for opening a Back to back L/C†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 66 4. 11 Foreign Remittance†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 67 4. 12 Foreign Correspondent Bank†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 68 TABLE OF CONTENTS Chapter Five Credit DepartmentPage No. 5. 1 Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 72 5. 2 Importance of Credit†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦.. 73 5. 3 Forms of Advances†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦ 74 5. 4 Process of loan sanction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 75 5. 5 Different types of loan and interest rates†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦.. 78 5. 6 Types of Credit Scheme made by the MBL†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦.. 79 5. Loan categori es and their Features†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦.. 83 . 5. 8 Credit Policy of MBL†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦94 5. 9 Credit Risk Management of MBL†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦. 95 5. 10 Credit Risk Grading†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦97 5. 11 Mechanism of Credit Distribution of the MBL†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 101 5. 12 Necessary Documents for Loan Settlement†¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 103 5. 13 Credit Recovery of MBL†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 104 Chapter Six Others Services of MBL 6. 1 Cards of MBL†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦108 6. 2 Online Banking†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦109 6. 3 SMS Banking services†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. .. 110 6. 4 SME Service Centre†¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦ 10 6. 5 MBL Brokerage House†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦111 Chapter Seven Conclusion 7. 1 Findings†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦ 113 7. 2 Recommendation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦ 114 7. 3 Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦119 7. 4 Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦ 120 [pic] Chapter: 01 INTRODUCTION 1. 1 Introduction 1. 2 Background of the study 1. 3 Rationale of the report: 1. 4Objectives of the Report 1. 5Methodology 1. 6Scope of the report 1. 7Limitations of the study 1. 1: Introduction Internship is a temporary work program in which a student can gain supervised practical experience in a particular professional field. It is the period of time during which a novice in a field serves in a subordinate capacity and continues to gain experience; the learning period before one becomes an expert. Practical Knowledge is highly needed to match with the theoretical idea and knowledge. Banking industries are the best organization to practice the theoretical knowledge. This sector plays very important role in the economic life of the nation. The health of the economy is closely related to the soundness of its banking system. Although banks create no new wealth but their borrowing, lending and related activities facilitate the process of production, distribution, exchange and consumption of wealth. In this way they become very effective partners in the process of economic development. Within our country there are government banks, semi government banks, private sector commercial banks of Bangladesh and also it is the second-generation private bank in Bangladesh. It started its important moment when Bangladesh economy was undergoing through massive economy reforms and pursing unilateral and multilateral trade liberalization with the backdrop of the World Bank made international Monitory Fund *IMF* recommendation. This Mercantile Bank Ltd with its 42 Branches in Manipulate location of the country providing the best quality services to the clients and customers. For the duration of my 3 months internship period from 1st July to 8th October , 2009 in Mercantile Bank Ltd. Those types of experiences I have acquired these are bring together to formulate this report. 1. 2. Background of the study: Banks play an important role in the business sector and promoting industrialization and economic development of a country. Banks provide necessary funds for executing various programs underway in the process of economic development. This paper is entitled â€Å"Overall Banking Activities of Mercantile Bank Limited† originated from the fulfillment of the internship program. I have selected this topic to have insight knowledge about the Activities of Mercantile Bank Limited and to get an idea about the various types of deposit, loan which are mostly provided. This study will also give me a vague idea about the rules and regulations of providing loan, loan recovery and overall lending functions of a commercial bank. After three months of internship period I am supposed to prepare this report revealing findings, knowledge as well as experience gathered during internship period. 1. 3. Rationale of the report: Knowledge and learning become perfect when it is associated with theory and practice. Theoretical knowledge gets its perfection with practical application. As our educational system predominantly text based, inclusion practical orientation program, as an academic component is as exception to the norm. As the parties, educational institution and the organization substantially benefit from such a program, it seems a â€Å"win-win situation†. It establishes contracts and networking contracts. Contracts may help to get a job. That is, students can train and prepare themselves for the job market. A poor country like Bangladesh has an overwhelming number of unemployed educated graduates. As they have no internship experience they have not been able to gain normal professional experience of establish networking system, which is important in getting a job. Recognizing the importance of practical experience, an opportunity is offered by Asian University of Bangladesh for ts potential business graduates to get three months practical experience, which is known is as â€Å"Internship Program†. For the competition of this internship program, the author of the study was placed in a bank namely, â€Å"Mercantile Bank Limited†. Internship Program brings a student closer to th e real life situation and thereby helps to launch a career with some prior experience. 1. 4. Objectives of the Report: ? Broad Objective The study was conducted to make a review and analysis of the activities of MBL which include General banking, Credit Department and Foreign Exchange Sector. This paper attempts to discuss overall activities of MBL prescribed so far by Bangladesh Bank with a view to ensuring financial soundness of the banking sector. The purpose was also to make recommendations for improving the quality and soundness of those processes for consideration of the bank management. ? Specific Objectives: The specific objectives of this study are as follows: †¢ To present an over view of MBL. †¢ To know about the area of general Banking. †¢ To analysis the Lending procedures maintained by MBL. †¢ To observe principal Lending activities of MBL. †¢ To evaluate Lending performance of MBL. †¢ To know Foreign Exchange operations of MBL. †¢ To recommend suggestions for the successful Banking Operations of MBL. 1. 5. Methodology: For teaming up the data & information collected through primary & secondary sources, I have used both qualitative & quantitative method. During my study I followed some methodology to find out the fact & feature of the Bank which are given as follows: (A) Area of study: My project is the overall activities of MBL with reference to Saatmasjid Road Branch, Dhaka. In order to carry out the research work, I focused on taking the interviews of the Personnel involved in the different departments, Manager and Senior Level Employees, Business Clients and Account Holders and Particular departmental heads. (B) Sources of data/information: I have collected my information/data from the following sources, which helped me to make this report. The source has divided by two parts. Such as, 01. Primary source 02. Secondary source Primary sources: Many of the data and information were collected from my practical experience and queries from the executives and from related instruments while doing my internship at MBL. Secondary sources: Secondary data are collected basically from observation & collection from Journals, Brochures, Annual Reports, Paper, Magazines, Publications, Books and others form of publications as well as websites. Different statistical tools like mean, frequency distribution, tabular and graphical presentation are used to analyze data. 1. 6. Scope of the report: In this report I tried to describe overall banking performance. This report is a descriptive study which tries to focus on the theories and practices of banking activities in the context of the financial institutions in Bangladesh. It will not focus on the comparable practices of other banks. The study has covered a curtail idea on MBL, operational scenario of three departments of Mercantile Bank Limited, Saatmasjid Road Branch. Mentioning that, operations of three departments are closely related to each department’s activity as well. This will eventually refer that how the bank help the customers securing their cash and assets, getting credit facility, repaying loan amount and bank’s regulatory compliance ,lending policy etc. Overall banking system for gathering experience, my scheduled time was divided in various departments, such as: Department |Days | |General Banking |25 | |Clearing |15 | |Investment & Credit |25 | |Foreign Exchange Division |25 | 1. 7. Limitations of the study: In conducting the study, some problems were cre ated which may be termed as limitations of the study. They are as follows: †¢ The study does not cover critical analysis and implementations of comparative study in an intensive manner. †¢ During my internship program up to date information was not published. †¢ Relevant papers and documents were not available sufficiently. The time of this study was very inadequate to obtain depth knowledge in every department. †¢ The bank officials though helpful in every respect do not have much time to explain the internal procedures. †¢ Another limitation of this report is Bank’s policy of not disclosing some data and information for obvious reason, which could be very much useful. †¢ This study completely depended on official records and annual reports. †¢ Sufficient record, publications, facts and figures were not available, these constraints narrowed the scope of accurate analysis. †¢ This report is restricted only to Mercantile Bank Ltd. [pic] Chapter: 02 Overview of Mercantile Bank Ltd. 2. 1. Banking sector in Bangladesh 2. 2. Historical Background of MBL: 2. 3. Vision, Mission and objectives of the bank: 2. 4. Core values 2. 5. Management aspect of MBL 2. 6. Divisional aspect of MBL: 2. 7. Branch Network 2. 8: Information about the Satmasjid Road Branch. 2. 9:Financial Performance of MBL 2. 10Nature of Business 2. 11. Financial products and services of MBL: 2. 12 Credit Policy of MBL 2. 1. Banking sector in Bangladesh: Banking system occupies an important place in an economy. A banking institution is indispensable in modern society. It plays a liberalization of economics policies in Bangladesh. Certainly banks can be identified by the functions they perform in the economy. Banks act as financial intermediary by transferring funds from savers to borrowers and in paying for goods and services. In 1971, Bangladesh, was East Pakistan, emerged as an independent country. In immediately nationalized the entire Banks expanding 3 Foreign Banks, six Nationalize Banks were thus formed. In 1983 a new policy was implemented allowing private sector participation in the industrialization. As a part of this process, two national commercial Banks were against denationalization and a number of Private Commercial Banks were allowed to operate. Among these Pubali Bank and Uttara Bank were the first to be decentralized. |Particulars Number of Banks | |Nationalized commercial Bank |04 | |Privatized commercial Bank |30 | |Specialize Bank |05 | |Foreign Bank |10 | |Co- Operative Bank |01 | |Grameen Bank |01 | |Total = |51 | Table 1: Schedule Banks in Bangladesh. 2. 2. Historical Background of MBL: Mercantile Bank Limited emerged as a new commercial bank to provide efficie nt banking services and to contribute socio-economic development of the country. The Bank commenced its operation on June 2, 1999. The Bank provides a broad range of financial services to its customers and corporate clients. The Board of Directors consists of eminent personalities from the realm of commerce and industries of the country. Mercantile Bank Ltd (MBL) was incorporated in Bangladesh as a Public Company, Limited by shares under the Companies Act 1994 as on May 20, 1999 and subsequently obtained Banking Operation License from Bangladesh Bank under the Bank Companies Act 1991 and commenced commercial operation on 02 June 1999 to provide efficient banking services and to contribute socio-economic development of the country. The bank has 42 branches and 3 SME service center. It has listed in the Stock Exchanges at Dhaka and Chittagong in 2003 and 2004 respectively. The Founder of MBL is committed to make it a little more different and a bit special qualitatively. This bank has new vision to fulfill and a new goal to achieve. The bank has been manned with talented and experienced personnel equipped with most modern technology so as to make it most efficient to meet the needs of 21st century. The Head Office of the Bank situated at 61, Dilkusha commercial Area, Dhaka. The Board of Directors consists of eminent personalities from the realm of commerce and industries of the country. The Authorized Capital of the Bank is Tk. 3000 million and the Paid -up Capital is Tk. 1798. 68 million. The Bank provides a broad range of financial services to its customers and corporate clients It has a large asset position comprising of Tk. 55928. 72 million in December 2008. [pic] 2. 3. Vision, Mission and objectives of the bank: Vision Would make finest corporate citizen Mission: Will become most caring, focused for equitable growth based on diversified deployment of resources, and nevertheless would remain healthy and gainfully profitable Bank. Objectives of Mercantile Bank: The objective of MBL is not only to earn profit but also to keep the social commitment and to ensure its co-operation to the persons of all level, to the businessman, industrialist – specially whom are engages in establishing large scale industry by consortium and the agro based export oriented medium and small scale industries by self inspiration. Strategic Objective: ? To achieve Economic Value Added (EVA) each year. ? To be market leader in product innovation. ? To be one of the top three financial institutions in Bangladesh in terms of cost efficiency. ? To be one of the top five financial institutions in Bangladesh in terms of market share in all significant market segments that the bank serve. Financial Objective: To achieve a return on shareholder’s equity of 20% or more, on average. 2. 4. Core values: For the Customers: providing with the caring services by being innovation in the development of new banking products and services. For the Shareholders: maximizing wealth of the bank. For The Employees: respecting worth dignity of individual employees devoting their energies for the progress of the bank. For the Community: strengthening the corporate values and taking environment and social risks and reward into account. INVESTORS INFORMATION: Investor can be informed about any information from Dhaka Stock Exchange Website and Bank’s website: †¢ www. dsebd. org †¢ www. mblbd. com 2. 5. Management aspect of MBL: The Board of Directors being at the highest level of organizational structure plays an important role on the policy formulation. The Board of Directors is not directly concern with day-to-day operation of Bank. They had delegated their authority to the Managing Director and CEO to look after the day-to-day affairs of the Bank. The Bank is running by an excellent management team under the direct supervision of a competent Board of Directors. The Board of Directors comprises total thirteen members, which is within the maximum limit as imposed by BPRD circular-12, dated April 26,2003of Bangladesh Bank, headed by the Chairman. Md. Abdul Jalil, is the present Chairman of the Board. The Managing Director (MD) and CEO head management team. Mr. Dewan Mujibur Rahman is the present Managing Director and CEO of MBL. The management hierarchy of Mercantile Bank Limited is given below: | Board of Directors | | Managing Director | | Additional Managing Director | | Deputy Managing Director | | Senior Executive Vice President | Executive Vice President | | Senior Vice President | | Vice President | | First Vice President | | Asst. Vice President | | First Asst. Vice President | |Senior Principal Officer | | Principal Officer | | Senior Officer | Officer | | Junior Officer | | Assistant Officer | Figure: The management hierarchy of MBL 2. 6. Divisional aspect of MBL: There are total fourteen divisions in the Head Office of MBL. List of various divisions of MBL is given below: | Audit and Inspection division | | Central Accounts Division | | | Credit Division | | Marketing, Development Banking Division | | General Services Division | |Human Resources Division | | International Division | | Information Technology Division | | Research Division | | Treasury Market Division | | Board Secretariat& Share Dept. | | Cost Control Dept. | Law & Recovery Dept. | | Card Cell | Fig: Divisions of MBL 2. 7. Branch Network: MBL is one of the 3rd generation commercial Bank in private sector of Bangladesh. The Bank within stipulation lay down by the Bank Company Act 1991 and directives as received from Bangladesh Bank from time to time provide all types of commercial Banking services. It has 42 branches all over the country and also enlisted the Dhaka and Chittagong stock exchange as publicly quoted company for its general class of share. |Bank's Name |Name of Region/Zone |No. f Branches | | |Dhaka |19 | | | | | | | | | | | | | |MERCANTILE BANK LIMITED | | | | |Gazipur |02 | | |Chittagong |06 | | |Sylhet |02 | | |Moulvibazar |01 | |Comilla |01 | | |Noakhali |01 | | |Bogra |01 | | |Rajshahi | 01 | | |Rangp ur |01 | | |Barisal |01 | | |Khulna |01 | | |Naogaon |02 | | |Cox’sbazar |01 | | |Feni |01 | | |Shariatpur |01 | | |Total Branches |42 | Table: Branches of MBL [pic] 2. 8: Information about the Satmasjid Road Branch: Address of Branch: Satmasjid Road Branch House: 735(old), 82/A (New) Road: 8/A (New), Satmasjid Road Dhanmondi, Dhaka-1205 e-mail:[email  protected] com Phone: 9139183, PABX: 8112463-4, 9141148 Fax: +88029139183 SWIFT: MBLB BD DH Opening Date: 1st November, 2004 as 22nd Branch of MBL. Number of Employees: 22 Name of Manager: Shamim Ahmed, Vice President & Head of Branch. Mercantile Bank has purchased the land and building of this Branch Last month where it operates. 2. 9: FINANCIAL PERFORMANCE OF MERCANTILE BANK LIMITED: (BDT in million) MERCANTILE BANK LIMITED AT A GLANCE: Particulars |2005 |2006 |2007 |2008 | |Authorized Capital |1,200. 00 |3,000. 00 |3,000. 00 |3,000. 00 | |Paid-up Capital |999. 27 |1,199. 12 |1,498. 90 |1,798. 68 | |Total Assets |28,890. 48 |37,159. 65 |44,940. 54 |55,928. 72 | |Deposits |25,087. 43 |33,332. 65 |39,348. 00 |49,538. 36 | |Loan & Advances |21,857. 05 |26,842. 14 |31,8 77. 86 |41,993. 5 | |Import |33,271. 90 |42,442. 80 |40,380. 10 |56,528. 80 | |Export |24,108. 57 |34,592. 10 |32,670. 10 |43,108. 50 | |Remittance |679. 10 |2,989. 10 |3,510. 40 |4,722. 90 | |Profit after tax |386. 83 |494. 22 |540. 50 |615. 88 | |No. Of Branches |28 |35 |41 |42 | |No. Of Employees |663 |879 |945 |1115 | |No. Of Foreign Correspondents |266 |306 |584 |586 | 2. 10. Nature of Business: The Bank engaged in all types of commercial Banking services within the stipulations laid down by Bank Companies Act 1991 and directives as received from Bangladesh Bank from time to time. All types of Commercial Banking Services are provided by the Bank within the stipulations laid down by Bank Companies Act. 1991 and directives as received from Bangladesh Bank from time to time. Commercial Banking is the core activity of Mercantile Bank Limited. The bank serves all type customers ranging from individuals to corporate bodies, both private and public. Mainly MBL collects deposit from the people at lower rate and invests the same to the people again at higher rate. And difference between lower rate of deposit and higher rate of investment is the earnings of the Bank. MBL mainly invests in industrial sector like short term, Middle term as well as long term for import of capital machineries, establish new industry and working capital assistances with this Bank play’s a significant role in Bangladesh economy. The functions of commercial banks are now wide and varied. However the unctions of commercial banks may broadly be classified into the following three categories: 1. General Banking 2. Credit and investment 3. Foreign Trade (Import, Export & Remittance) 2. 11. Financial products and services of MBL: The bank has launched a number of financial products and services since its inception. Among them the followings have attained wide acceptance among the people ? Various Deposit Schemes : ? Double Benefit Deposit Scheme (DBDS) ? Family Maintenance Deposit (FMD) ? Mashik Sanchaya Prokalpa (MSK) Or Monthly Savings Scheme (MSS) ? Quarterly Benefit Deposit Scheme ? 1. 5 Times Benefit Deposit Scheme ? Advance Benefit Deposit Scheme (ABDS) Or Agrim Munafa Amanat Prokolpo (AMAP). Deposit Schemes : Monthly Saving Scheme The prime objective of this scheme is to encourage the people to develop their habit of saving. Under this scheme, one can save a fixed amount of return every month and get a lucrative amount of return after five, eight or ten years. Family Maintenance Deposit Scheme Under this scheme, one can deposit a certain amount of money for five years and in return he/she will receive benefits on monthly basis. Benefit start right from the first month of opening an account under the scheme and continue up to five years. On maturity the principal amount will be paid back. Double Benefit Deposit Scheme Under this scheme, one can deposit a certain amount of money for a six year period. After six years, the deposit amount will be doubled. Quarterly Benefit Deposit Scheme Under the Quarterly Benefit Deposit Scheme, one can deposit for a period of three years and in return depositor will receive benefits on quarterly basis. Benefit starts right from the first quarter of opening an account under the scheme and continues up to three years. On maturity the principal amount will be paid back. 1. 5 Time Benefit Deposit Scheme Under the 1. 5 Times Benefit Deposit Scheme, one can deposit a certain amount of money for 42 months or three and half years. On maturity, the depositor will receive 1. 5 time of the deposited amount. Advance Benefit Deposit Scheme Under this Scheme, one can deposit a certain amount of money for two years. The depositor will receive the benefit on yearly basis. The benefit amount of first year will be received in advance at the time of deposit. On maturity, the depositor will get back the principal amount with the benefit amount of second year. ? Various Credit Schemes : ? Consumers Credit Scheme (CCS) ? Car Loan Scheme ? Doctors Credit Scheme ? Rural Development Scheme ? Lease Financing ? Personal Loan ? Small Loan Loan Products: Consumer Credit Scheme Consumers' Credit Scheme is one of the popular areas of collateral-free finance of the Bank. People with limited income can avail of credit facility to buy household goods including computer and other consumer durables. Small Loan Scheme This scheme has been designed especially for the businessmen who need credit facility for their business and can't provide tangible securities. Lease Finance This scheme has been designed to assist and encourage the genuine and capable entrepreneurs and professionals for acquiring capital machineries, medical equipments, computers, vehicle and other items. Flexibility and easier terms and conditions of this scheme have attracted the potential entrepreneurs to acquire equipments of production and services and repay gradually from earnings on the basis of ‘Pay as you earn'. Doctors' Credit Scheme Doctors' Credit Scheme is designed to facilitate financing to fresh medical graduates and established physicians to acquire medical equipments and set up clinics and hospitals. Rural Development Scheme Rural Development Scheme targeted for the rural people of the country to make them self-employed through financing various income-generating projects. This scheme is operated on group basis. Woman Entrepreneurs Development Scheme Women Entrepreneurs Development Scheme has been introduced to encourage women in doing business. Under this scheme, the Bank finances the small and cottage industry projects sponsored by women. SME Loan Scheme Small and Medium Enterprise (SME) Loan Scheme has been introduced to provide financial assistance to new or experienced entrepreneurs to invest in small and medium scale industries with a comparatively low rate of interest as the same is assisted by the Bangladesh Bank with refinancing facilities. Personal Loan Scheme Personal Loan Scheme has been introduced to extend credit facilities to cater the needs of low and middle-income group for any purpose. Government and semi-government officials, employees of autonomous bodies, banks and other financial organizations, multinational companies, reputed private organizations and teachers of recognized public and private schools, colleges and universities are eligible for this loan. Car Loan Scheme Car Loan Scheme has been introduced to enable middle-income people to purchase Cars/SUVs/Jeeps. Government and semi-government officials, employees of autonomous bodies, banks and other financial organizations, multinational companies, reputed private organizations, teachers of recognized public and private universities and businessmen are eligible for this loan. Home Loan Scheme To meet the growing need of housing for middle and lower-middle income people, MBL has introduced Home Loan Scheme. We also support the Bangladesh Bank's Home Loan Refinance Scheme. The Scheme boosts up the growth of housing sector. Such loan shall be available for purchase or construction of new apartments for self-residing purpose. Overseas Employment Loan Scheme Overseas Employment Loan Scheme is designed to facilitate the Bangladeshi youths seeking employment aboard but who are unable to meet the expenses to reach the workplace from their own sources. The ultimate objectives of the scheme is to promote skilled / semi-skilled manpower to different countries across the world as well as to provide support to Government Policy considering priority of this sector. By availing loan under this scheme, the active youths of middle and lower middle class can get overseas employment by avoiding borrowing from the illustrious class or village ‘mohajon' at a very high cost or selling their paternal properties. The scheme helps fetching foreign currency for the country as well as fulfill the Bank's commitment to encourage micro-lending for poverty alleviation, improve the quality of life and thereby contribute to socio-economic development of the country. ? Foreign Exchange Services: ? Export Finance ? Import Finance ? Inward Remittance ? Issue L/C ? Shipping Guarantee 2. 12. Credit Policy of MBL: MBL credit policy contains the views of total macro-economic development of the county as a whole by way of providing financial support to the Trade, Commerce and Industry. Throughout its credit operation Mercantile Bank Limited goes to very possible corners of the society. They are financing large and medium scale business house and industry. At the same time they also takes care entrepreneurs through its operation of lease financing and some micro credit, Small Loan scheme etc. As a part of its Credit Policy MBL through its credit operation maintains commitment for social welfare. The bank is coming up with a scheme where the under privileged children will be given financial support for education and self-employment. From operational aspects it is observed that as a matter of policy. i. Mercantile Bank Limited put emphasis on the customer i. e. the ‘Man’ and the Business not on the Security in selecting borrowers. ii. It takes of diversity in credit portfolio. iii. It takes care maintaining proper Mix of short, medium and ling term finance in its credit portfolio usually they do not go for long term Finance for a period not exceeding 5 years. iv. Charging of interest is flexible depending on insisting of the proposal and the customer [pic] Chapter: 03 General Banking Activities: 3. 1: Introduction 3. 2: Account Opening 3. 3: Different Types of Scheme and Features 3. : Cash Department 3. 5: Clearing House 3. 6: Issuing PO, DD, TT 3. 7: Dispatch 3. 8: Issuing cheque 3. 9: Closing of an Account 3. 1: Introduction: All business concerns earn a profit through selling either a product or service. A bank does not produce any tangible product to sell but does offer a variety of financial ser vices to customers. General banking is the starting point of all the banking operations. It is the department, which provides day-to- day services to the customers. Everyday it receives deposits from the customers and meets their demand for cash by honoring cheque. It opens new accounts, remit funds, issue bank draft and pay orders etc. Since bank is confined to provide the service everyday, general banking is also known as retail banking. This section provides the following services: †¢ Primary Information †¢ Account Opening †¢ Cheque Issuing †¢ Pay order Issuing †¢ Issuing Telegraphic Transfer (TT) †¢ Issuing Demand Draft (DD) †¢ Dispatch patch †¢ Clearing †¢ Cash department PRIMARY INFORMATION Customer gets primary information about the bank’s services from this section. Then they are sent the other section under their demanding services. 3. 2: ACCOUNT OPENING: There are different types of account as offered by MBL: i. Savings Account ii. Current account iii. STD (Short term deposit) iv. FDR (Fixed deposit receipt) v. MSS (Monthly saving scheme) SAVINGS ACCOUNT This account is basically offered those customers who want to save money at any time. Customer can save his/ her money according to his/ her declaration. The minimum amount of opening charge of savings ac count is TK. 1,000. But it should be mentioned that when customer want to close the tax is deducted from the interest and have to pay closing charge TK. 100. If want to transfer customer have to pay TK. 200 for transfer charge. †¢ Requirements: †¢ Form must be properly filled up †¢ Have a introducer who introduce the account holder †¢ Two copies of passport size photograph of account holder †¢ One copy of passport size photograph of nominee Have to fill up declaration form where must mention amount of each transaction and annual turnover †¢ Have to fill KYC (Know Your Customer) form, †¢ Have to submit National ID Card ( for all customer) †¢ Have to submit student ID Card (for student) †¢ Have to submit trade license (for business) †¢ Deed (for partnership) †¢ Have to submit TIN number †¢ Have to submit photocopy of passport. ? CURRENT ACCOUNT Current account mainly opened for the Companies and partnership firm. The amount o f this account’s transaction would be big. The requirements of opening this account are given below. †¢ Requirements: For Individual / Joint Account †¢ Two photographs of account holder. †¢ Identity (copy of passport, National ID card, Commissioner Certificate). †¢ Joint Declaration Form (For joint a/c only). Employee’s Certificate (in case of service holder). †¢ One photographs of nominee. For Limited Company: †¢ Copy of valid trade license. †¢ Copy of certificate of incorporation. †¢ Certified Copy of Memorandum of Associations and Articles of Associations. †¢ Up to Date List of Directors. †¢ Board Resolution Regarding Opening and Operations of Bank Account With Mercantile Bank Limited †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Branch. †¢ (Resolution should be in accordance with the provision of Articles of Association of the Company. †¢ Copy of Certificate of Commencement of Business- for Public Limited Company Only. For Partnership Firms: †¢ Copy of valid trade license. †¢ Copy of Partnership Deed. Letter of Account Agreement (Partnership) Duly Signed by all The Partners in Their Personal Capacity. †¢ Letter of Partnership Duly Signed by All the Partners in Their Personal Capacity. Club / societies account †¢ Two photographs of each account holder. †¢ Board Resolution for Opening A/C duly certified by President/ Secretary. †¢ List of Existing Managing Committee. †¢ Registration (if any). †¢ Rubber Stamp. †¢ Permission letter from Bureau of N. G. O. (In case of N. G. O. A/C). ? SHORT TERM DEPOSIT(STD) This account is basically offered those customers who want to save money/ make transaction of a big amount at any time. The businessmen are mainly the customer of this account who makes huge amount transaction in a month. Customer can save his/ her money according to his/ her declaration. The minimum amount of opening charge of savings account is TK. 100,000. But it should be mentioned that when customer want to close, the tax is deducted from the interest and have to pay closing charge TK. 100. If want to transfer customer have to pay TK. 200 for transfer charge. Requirements: †¢ Form must be properly filled up †¢ Have a introducer who introduce the account holder †¢ Two copies of passport size photograph of account holder †¢ One copy of passport size photograph of nominee †¢ Have to fill up declaration form where must mention amount of each transaction and annual turnover †¢ Have to fill KYC (Know Your Customer) form, Have to submit National ID Card ( for all customer) †¢ Have to submit student ID Card (for student) †¢ Have to submit trade license (for business) †¢ Deed (for partnership) †¢ Have to submit TIN number †¢ Have to submit photocopy o f passport 3. 3:Different Types of Scheme and Features: ? MASHIK SHANCHOY SCHEME: The money is fixed up to a certain months or year. Bank gives them interest against this money. If customer doesn’t encashment his/ her fixed deposit at a time the amount is auto renewed and the interest is applied automatically at the account. |Amount |TK. 500 |TK. 1000 |TK. 1500 |TK. 2500 |TK. 000 | |Years | | | | | | |5 years |38250 |76500 |114750 |191250 |382500 | |8 years |71500 |143000 |214500 |357500 |715000 | |10 years |100000 |200000 |300000 |500000 |1000000 | ? DOUBLE BENEFIT SCHEME: Objectives: ? Give maximum benefit. ? Help in meeting specific needs like education, marriage etc. Deposit becomes double in seven and half years. Mode: Tenure of the deposit is 7. 5 years. Amount of DepositPeriod Amount Payable 1, 00,000 7. 5 Years 2, 00,000 Other Features: ? The Minimum amount of deposit is BDT 50,000. 00(Fifty thousand) or its multiples. ? All taxes/duty/levy and /or any other surcharge s presently in force or that may be imposed by the Government of Bangladesh (GOB) from time to time will be deducted/ recovered from the deposit account under this scheme. ? In case of premature encashment interest will be paid on Saving A/C Rate. ? Loan may be granted up to maximum 80% of the deposited amount but minimum principle amount must be BDT 20,000. 00. Loan processing fee be realized BDT 50. 00 only and usual stamp costs also be realized. For example: Initial amount is TK. 1000,000 The bank give interest TK. 100,000 against TK. 100,000 deposit Customer gets TK. 190,000 (200,000-100,[email  protected]% tax = TK. 190,000) Requirements: Form must be properly filled up, One copy of passport size photograph of account holder, One copy of passport size photograph of nominee, ? ADVANCED DEPOSIT SCHEME: Objectives: ? Get Extra benefit from Minimum Deposit. Mode: Maintained for a period of 2 (Two) years. Minimum deposit amount 1,00,000(One Lac) only. Interest Rate Per BDT One Lac : BDT 1 Lac (One Lac) , Tk. 9,500. 00 for first year Tk. ,09,250. 00 for second year. Other Features o All taxes/duty/levy and/or any other surcharges presently in force or that may be imposed by the government of Bangladesh from time to time in Deposit Accounts will also be applicable for the account for the account opened under this scheme and such taxes/duty/levy and/or any other surcharges shall be deducted/ recovered from the deposit account under this schemes. o Loan may be granted up to maximum 70% of deposit. ? Times Benefit Deposit Scheme Under the ‘1. 5 Times Benefit Deposit Scheme’ a deposit of minimum BDT 50,000. 00 (fifty thousand) or its multiples will be received for a period of 4. 2 years. On maturity, 1. 5 times of the deposited amount will be paid back to the account holder as per example given below: Example: Initial Deposit (BDT)50,000. 001, 00,000. 005, 00,000. 00 Return after 4. 2 years (BDT) 75,000. 00150000. 00 750000. 00 Other Features: ? All taxes/duty/levy and /or any other surcharges presently in force or that may be imposed by the Government of Bangladesh (GOB) from time to time will be deducted/ recovered from the deposit account under this scheme. ? In case of premature encashment interest will be paid on Saving A/C Rate. However, no interest shall be paid if premature encashment take place before expiry of 1 (one) year. In the event of death of the depositor before the maturity, the deposit account may be encased (premature) as per rule or may be continued up to maturity on written approach by the nominee(s). ? Loan may be granted up to maximum 80% of the deposited amount but minimum principle amount must be BDT 20,000. 00. ? Loan processing fee be real ized BDT 50. 00 only and usual stamp costs also be realized. ? FAMILY MAINTENANCE SCHEME Objectives: ? Help the retired persons for investing their retirement benefits. ? Create investment opportunities for Non-Resident Bangladeshi. ? Explore investment opportunities for school, college, university etc. ? Give investment opportunities for Trust; Foundation etc. Mode: Deposit a fixed amount of money for 05 (Five) years. Depositor will get a certain sum of money in each month proportion to his/her deposit during the entire tenure. Benefits: Tenure of deposit is 05 (Five) years. Minimum amount of required deposit is TK. 50,000. 00 or its multiple DepositMonthly Benefit (Amount in TK. ) 1, 00,000800 2, 00,0001, 600 3, 00,0002, 400 Other Features o The Minimum amount of deposit is BDT 50,000. 00 (Fifty thousand) or its multiples. o All taxes/duty/levy and /or any other surcharges persently in force or that may be imposed by the Government of Bangladesh (GOB) from time to time will be deducted/ recovered from the deposit account under this scheme. o In case of premature encashment interest will be paid on Saving A/C Rate. A saving account will be needed to be maintained to receive quarterly benefit payment. o Loan may be granted up to maximum 80% of the forced encashment value on the date of loan processing. During the period of continuation of loan, monthly benefits of FMD account will be credited only to loan account. o Loan processing fee be realized BDT 50. 00 only and stamp costs also be realized. ? QUARTERLY BENEFIT SCHEME The ‘Quarterly Benefit Deposit Scheme' will be maintained for a period of 3 (three) years and the minimum amount of deposit is BDT 50,000. 00 (fifty thousand) or its multiples. Interest will be paid on quarterly basis as per example given below. On maturity the principal amount will be paid back. Initial Deposit (BDT)TermQuarterly Benefit Payable (BDT) 50,000 3 Years 1,200 100,000 3 Years 2,400 200,000 3 Years 3,600 Other Features: ? All taxes/duty/levy and /or any other surcharges presently in force or that may be imposed by the Government of Bangladesh (GOB) from time to time will be deducted/ recovered from the deposit account under this scheme. ? Loan may be granted up to maximum 80% of the forced encashment value on the date of loan processing. During the period of continuation of loan, quarterly benefits will be credited only to loan account. ? Loan processing fee be realized BDT 50. 00 only and usual stamp costs also be realized. FIXED DEPOSIT: The money is fixed up to a certain months or year. Bank gives them interest against this money. If customer doesn’t encashment his/ her fixed deposit at a time the amount is auto renewed and the interest is applied automatically at the account. |Amount |Months/ Year |Interest | |TK. 10,000< |1 month/ 2 months/ 3 months |8. 5% | |TK. 10,000< |3 months< |11. 50% | o Form must be properly filled up One copy of passport size photograph of account holder o One copy of passport size photograph of nominee 3. 4: Cash Department: Opening of Cash: Beginning balance is used to start daily transaction & maintenance of Receipt and Payment Registers while receiving & paying different amount of cash. Previously issued cheque will be paid if issued 6 months before. Advance issued cheque cannot be made payment even one day before. Evening Banking: Can only receive cash. No payment can be made except some special cases. Issue Note: Notes issued by the bank & accepted by the people, fresh notes . Non-issue Note: Notes cannot be issued for public like torn, mutilated notes Soiled Notes etc. 3. 5: Clearing House: Functions of Clearing Clearing stands for mutual settlement of claims made in among member banks at an agreed time and place in respect of instruments drawn on each other. †¢ Clearing house is an arrangement under which member banks agree to meet, through their representative, at the appointed time and place to deliver instruments drawn on them. †¢ The net amount payable or receivable as the case may be, is settled through an account kept with the controlling bank (Bangladesh Bank). [pic] Types of clearing †¢ Outward clearing †¢ Inward clearing Types of returns †¢ Outward return †¢ Inward return Clearing (Outward) process: tier First tier: Collection Branch Second tier: Principal Branch/local office Third tier: Clearing house (Bangladesh Bank) Clearing (Inward) process: tier First tier: Clearing house (Bangladesh Bank) Second tier: Principal Branch/ Main Branch Third tier: Paying Branch 3. 6: ISSUEING PO, DD, TT: ? Pay Order: This is one type of security. This can not be transferred. Anyone can draw a pay order. The pay order can be encashment from any bank. |Amount |Commission |Vat | |1>10,000 |25 |4 | |10,000< 1,000,000 |50 |8 | |100,000