A Case Study Of Bangladesh Commerce Bank Ltd

Prolegomenon Modern banks play an important part in promoting economic development of a country. Banks provide necessary funds for executing various programmers underway in the process of economic development. They collect savings of large masses of people scattered through out the country, which in the absence of banks would have remained idle and unproductive. These scattered amounts are collected, pooled together and made available to commerce and industry for meeting the requirements. Economy of Bangladesh is in the group of world’s most underdeveloped economies. One of the reasons may be its underdeveloped banking system.

Government as well as different international organizations have also identified that underdeveloped banking system more causes some obstacles to the process of economic development. So they have highly recommended for reforming financial sector. Since 1990, Bangladesh Government has taken a lot of financial sector reform measurements for making financial sector as well as banking sector transparent, formulation and implementations of these reform activities has also been participated by different international organization like World Bank, IMF etc.

In 1996, World Bank published ‘Bangladesh: Agenda for action’ in which it has suggested a lot of recommendations for economic development of our country. These recommendations include special presentation for reforming banking sector.

Rationality of the Study Proper economic growth of a country largely depends on sound and proper industrialization. A huge amount of fund is required for the sound industrialization. Various Private and Public banks invest their funds in the form of credit. The BCBL also invests or lends its fund in this regard. The BCBL has several types of credit facilities. The profitability of a bank largely depends on appropriate credit approval procedure. The credit approval process involves various type of risk. When a bank lends money to the investor, it has to consider the related risks of the lending.

So a proper credit approval policy and monitoring technique is essential.

For the knowledge of banking system, the students of Business Studies must acquire the knowledge of lending process. It is the core to a bank. Bank earns profit by financing various sectors of business in the form of credit. Hence credit approval and monitoring technique is very important for the bank and the economy also. So the researcher selects this specific topic for the study.