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7.1 Findings& Analysis It is not so easy to find out and analyze the Foreign Exchange Mechanism and Prime Banks performance regarding this mechanism within short time span. Despite of this, an inclusive approach has been taken to find out and analyze ins out of foreign exchange activities of Prime Bank Ltd in this paper. Under the light of SWOT analysis the Foreign Exchange Mechanism of Prime Bank Ltd. (considering Jubilee Road Branch, Chittagong as standard) has been judged and evaluated. SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. The complete elaboration of SWOT analysis is followingS= Strength. W= Weakness. T= Threat. O= Opportunities. SWOT analysis is very helpful to measure and evaluate a stated objective within a very short time. Hence this approach has been adopted in this paper. After monitoring closely and working proactively in the Foreign Exchange Department of Prime Bank Ltd. Jubilee Road Branch, Chittagong the following Strength, Weakness, Threat, and Weakness has been found7.1.1 Strength According to the CAMEL rating Prime Bank Ltd. is the top most bank of Bangladesh. This rating is based on Capital Adequacy, Asset Quality, Management, Earnings, and Liquidity of the bank. Bangladesh Bank monitors these parameters and publishes the ranking. This top most position of Prime Bank is the most important strength of the Bank. 76

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This is the reason why every household clients and corporate clients relies on this bank. Other strengths are The Bank has well reputation in the market. Has good relation with Importers and Exporters. Sound Import and Export operation. Executives working in the Foreign Exchange Division are highly qualified and experienced. They are quite capable of handling large scale of export and import transactions and making a profitable customer relationship with the clients. In export and import activities there are lots of provisions of making unethical and unlawful transactions. But Prime Bank Ltd. gives it utmost attention so that such unethical and unlawful does not takes place. Hence the Exporters and Importers who appreciate ethical and lawful export and import activities favor Prime Bank Ltd. This image of Prime Bank Ltd. is also a vast strength of the Bank. Recently Prime Bank Ltd. has gone through an agreement with Western Union Money Transfer to provide quick and more authentic remittance service to its clients. 7.1.2 Weakness There is no unmixed blessing in the earth. Every object in the world has some lacking. So it is quite natural to have some perforates in the performance of the Prime Bank Ltd. In Foreign Exchange Division Prime Bank still uses lots of register for maintaining its foreign exchange transactions. It is time consuming and there are lots of chances for making mistakes. Computer software should be used to maintain these transactions to ensure timeliness and error free recording.

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There is no customer complain desk in the Banks branches. It is not only important part of the foreign exchange activities but also for other two department of the BankGeneral Banking and Credit Department.

During performing internship program and preparing this report it has been found there were some shortages of stationary items in the Foreign Exchange Division of Prime Bank Ltd. Jubilee Road Branch as lots of stationary items needed for every foreign exchange transactions and every day. This problem may be for very short time but it has proved the smooth supply of these stationary items to ensure smooth recording and making transactions. So the management of Prime Bank Ltd. should devote its more attention to this.

7.1.3 Opportunities As stated earlier this Bank is number one Bank of Bangladesh. Both exporters and importers have their faith on this Bank. This great opportunity for Prime Bank Ltd. The percentage of classified loans is below 2% which is far better than international standard. Prime Bank Ltd. has already 56 branches all over the country and recently they have planned to set up branches in some other places of the country and some overseas branch. This new planning specially setting up branches in overseas will help to increase its foreign exchange operation. Prime Banks new agreement with the Western Union Money Transfer will help to increase foreign remittance flow.

7.1.4 Threat
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Economic stagflation and economic break down of the country especially after 9/11.

As countrys export is RMG sector depended, reduce in RMG export has affected foreign exchange department of the Bank.

Government continuous pressure to reduce interest rate. Frequent fluctuation of domestic currency worth against US Dollar. Political crisis and decaying country image as exporter. Rapid increase of private sector Bank in number and size.

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7.2 Recommendation Working proactively in Prime Bank Ltd. Jubilee Road Branch, Chittagong this report has been prepared. It has been found that Prime Banks overall performances regarding foreign exchange activities are quite satisfactory. Despite, Prime Bank Ltd. should overcome some of its limitation to hold the banks current performance in this arena.

The Bank should be come under complete computerization. As stated earlier Foreign Exchange Division of Prime Bank Ltd. using lots of register to record foreign exchange transaction and this procedure is time consuming and there is every possibility of making some mistakes which may create confusion among the clients. There is a good news is that Prime Bank Ltd. is going to launch a banking software for conducting financial transactions. The software should be launched as soon as possible.

The laws and customs related to the foreign exchange are changing very rapidly. Newer laws and customs are producing by the ICC to cope with the changing world business characteristics. So, Prime Bank Ltd. should take proper initiative to acknowledge its official about newer trend, laws and customs in practice. They should be given proper training to cope with the changing laws and customs and make them more efficient.

The scenario of International Business is quite dynamic. Newer trends are taking place time to time. This may create a tension between exporters-importers and the
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bankers. To reduce confusion and making long term profitable customer relationship the Bank should arrange seminars, workshops, discussion etc. this will help the Bank to run in safe mode.

The bank should establish booth in the Chittagong Port (One Bank has two booth in the Chittagong Port). It will enable the bank to capture more foreign exchange business and to provide more quick service and support to the clients.

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7.3 Conclusion Foreign Exchange Division is crucial for any bank. A banks performance largely depends on this division. Foreign Exchange activities have an equal significance to economic growth and development of the country. So through this division the banks are contributing to the interest of the country.

Working three months in Prime Bank Ltd. Jubilee Road Branch, Chittagong- the overall procedure of Foreign Exchange activities has been observed. As being the top class bank of Bangladesh (according to the CAMEL rating), it has a good reputation and faith to exporters-importers of Bangladesh. As Chittagong is the gateway of export-import it has been found that Prime Bank Ltd. has an immense status to the Chittagongs giant exporters-importers.

More over Prime Bank Ltd. Jubilee Road Branch has got a fleet of talented, experienced and efficient officials working in the Foreign Exchange Division. They are quite capable of handling large scale of export-import operation and maintaining a good relation with the client.

The performance of Prime Bank Ltd. of last five years is quite satisfactory. The Jubilee Road Branch has financed in export-import through LTR and PAD $ this year up to

September. Inward and Outward Remittance up to September this year is $ and $.

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Yet Prime Bank Ltd. has got some limitation in the arena of Foreign Exchange Division. The Bank is still using lots of register to record foreign exchange transactions, this is time consuming and has possibility of occurring errors. The bank should come under complete computerization as soon as possible. However, the bank management has said that they are going to launch a new software to run banking transactions soon.

The procedure for conducting foreign exchange activities is almost same in every banks of Bangladesh. But the laws and customs related to the foreign exchange activities are quite changing. Every bank tries to cope with the newer trends of foreign exchange as soon as possible. So Prime Bank Ltd. has no scope to relax that it is doing well in foreign exchange arena. Rather Prime Bank Ltd should continuously arrange seminars, training, and symposiums to acknowledge its work force about the newer trends to make them more efficient and to get competitive advantages over other banks.

This report has prescribe some recommendation to improve current performance of the Prime Bank Ltd. it can be said that if Prime Bank Ltd. takes initiative to implements those recommendation the banks performance and image to the clients will largely enhanced.

As concluding words, it can be said that it is not possible within shortest time like this three months internship period to reveal the true picture of the vast extent Foreign Exchange Division. But there was no indolence to get an overview of this division. And the light of this overview this paper has been produced. References 83

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1. The Bank, page no: 05-07, Annual Report 2006, Prime Bank Ltd. 2. Incorporation, page no: 06, Annual Report 2006, Prime Bank Ltd. 3. Capital Structure, www.prime-bank.com, browsed on September 13, 2007 at 12:34 PM. 4. Performance at a glance, www.prime-bank.com, browsed on September 13, 2007 at 12:34 PM. 5. Financial Strength, www.prime-bank.com, browsed on September 13, 2007 at 12:34 PM. 6. Organogram of Prime Bank Ltd, page no. 09, an internship report prepared on Marketing of Financial product of Prime Bank Ltd, prepared by Arfanul Islam, Student MBA program, Chittagong University, Chittagong.

Bibliography 84

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Manual for Foreign Exchange Division, Volume IV, Issue 2007, Prime Bank Ltd. UCPDC, ICC Publication, Issue 2007. TT Sethi, Money Baking and International Trade, New Edition, S. Chand & Company Ltd, New Delhi, 2004. John D. Daniels, Lee H. Radebaugh, Daniel P. Sullivan, International Business: Environment and Operation, Tenth Edition, Pearson education International, New Jersey ,2004. M. Omar Ali, Business Communication Theory and Application, Third Edition, 2003. Naresh K. Malhotra, Marketing Research, Fourth Edition, Pearson education International, India, 2004. C.R. kothari, Research Methodology, Second Edition, New Age International Publishers, New Delhi 2005. Miah, A.A., Scrutiny, Lodgment and Retirement of Import Bills, Reading Materials on International Trade & Finance (E-102), Bangladesh Institution of Bank Management (BIBM), 2002. IMPORT POLICY ORDER 1997-2000, Ministry of Commerce, Government of Peoples Republic of Bangladesh. Monthly Banker, volume-17, No.16 (16th April-15th May 2007). Oxford Dictionary of Business, Second Edition, Oxford University Press, New York, 2003. Glossary
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Abbreviations L/C A/C IBCA IBDA FDBP FDBC PAD LTR B/L B/E UCPDC Letter of Credit. Account. Inter Branch Credit Advice. Inter Branch Debit Advice. Foreign Documentary Bill for Purchase. Foreign Documentary Bill for Collection. Payment against Document. Loan against Trust Receipt. Bill of Lading. Bill of Exchange. Uniform Customs and Practice for Documentary Credit.

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