Table of Contents Chapter 1: Introduction.............................................. 3 1.1 Background of the study.........................................4 1.2 Objectives of the study.........................................4 1.3 Scope of the study..............................................5 1.4 Rationale of the study..........................................5 Chapter 2: Methodology............................................... 6 2.1 Sample design...................................................7 2.2 Data collection.................................................7 2.3 Data analysis...................................................7 Chapter 3: Literature review.........................................9 3.1 Theoretical review.............................................10 3.2 Empirical review...............................................15 Chapter 4: Remittance Scenario of Bangladesh........................18 4.1 Remittance and economic development in Bangladesh..............19 4.2 Cost and benefit of overseas employment........................20 4.3 Remittance management by private commercial banks..............20 4.4 Remittance management system...................................21 4.5 Drawbacks in banks’ remittance programs........................22 Chapter 5: Overview of the Studied Organization.....................23 5.1 Overview of the conventional commercial banks..................24 5.2 Overview of the Islamic banks..................................25 Chapter 6: Analysis and Discussion..................................26 1 | Page
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Remittance Performance of Islami Banks and Conventional Banks : A comparative Study
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Table of ContentsChapter 1: Introduction..............................................................................................................................3
1.1 Background of the study......................................................................................................................4
1.2 Objectives of the study.........................................................................................................................4
1.3 Scope of the study................................................................................................................................5
1.4 Rationale of the study..........................................................................................................................5
2.2 Data collection.....................................................................................................................................7
2.3 Data analysis........................................................................................................................................7
Chapter 3: Literature review......................................................................................................................9
Bangladesh is one of the largest manpower exporting countries in the world and being a major manpower
exporting country Bangladesh earn substantial amount of remittance. Remittances earned have already
been emerged as a prime driving force to the economic growth and poverty alleviation in Bangladesh. It
has obtained second position among the foreign currency earnings sector of Bangladesh. Formally, the
export of manpower from Bangladesh has been started in 1976. In this year around fourteen thousand
people went to the Middle East for searching employment and they sent 5 crore USD remittance to
Bangladesh. After that, the numbers of migrant workers and the amount of remittance have been
increasing gradually. Thus the export of manpower has become one of the most significant foreign
currency earning sectors of Bangladesh. The foreign remittance income is not only increasing foreign
currency reserve but also playing a significant role to reduce poverty and to enhance the economic
development of Bangladesh. It contributes our national economy in a large measure by increasing foreign
exchange reserve, per capita income and employment opportunities. Remittance flows to our country
basically through formal channels and informal channels. And formal channel includes the banking
system which is again broadly categorized as Islamic and Financial banking system. This study is
concerned about the remittance performance of both type of banks in Bangladesh.
1.1 Background of the study
Remittance plays a significant role in the economic development of Bangladesh. Major portion of
remittance flow to our country through banking channel which is basically includes conventional banks
and Islamic banks. The remittance performance is not similar for both types of banking system. Thus
significant differences are found between these two systems in remittance performance. Therefore this
study is concerned with the comparative study of remittance performance by conventional commercial
banks and Islamic commercial banks.
1.2 Objectives of the study
Broad Objective:
The main objective of this study is to compare and contrast remittance performance of conventional banks
and Islamic banks and to identify the reasons behind such performance difference.
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Specific Objectives:
Some other supportive objectives of this report are as follows:
To explore the remittance scenario of Bangladesh.
To inspect various channels that facilitates the inflow of remittance.
To identify the growth rate of remittance by both types of banks.
To show how the amount of remittance is correlated to the number of branches and number of
employees of the selected banks
1.3 Scope of the study
The scope of this study is much broader. This study would help me to identify the basic distinction
between Islamic banking system and conventional banking system in remittance performance. This study
will also help me to identify the factors considered as success point for these two systems.
1.4 Rationale of the study
This study shed light on the remittance performance of Islamic banks and Conventional banks
of Bangladesh. Thus this study would be beneficial for the academicians, students and more
particularly for those who are working in the banking sector. It would help them to find out the
performance of remittances for each type of banking system which in turn would allow them to
identify the lacking in managing the remittance and take some proper steps to attract more
remittance flow through the formal banking channel.
1.5 Limitations of the study
I have tried my best to collect the relevant information and searched different websites to get the right
data. There are some limitations, which act as a barrier to conduct the program and for doing an empirical
research work. The limitations were:
Time is the main obstacle to come up with a good study
All data are not available in websites
In many cases, up to date information was not published
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Chapter 2: Methodology
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2.1 Sample design
My main objective is to compare between the performances of the conventional banks and Islamic banks
in terms of remittance. Thus we have considered the private commercial banks of Bangladesh. For this
act, we have used Intensity Sampling Design as we studied twenty three local private commercial banks
for which the last five to seven years data are available and seven Islamic banks operating in Bangladesh
to analyze Islamic banking system.
2.2 Data collection
In order to conduct the study secondary sources of data has been used. The following sources have been
used for the purpose of gathering and collecting data as required.
Secondary Data
a) Activities of Banks, Insurance and Financial Institutions –Ministry of Finance (People’s Republic
of Bangladesh)
b) Financial statements of scheduled bank
c) Bangladesh Bank Annual Report.
d) Bangladesh Economic Review.
e) Working papers.
f) Official records of Bangladesh Bank
g) Works done by others from the Internet.
2.3 Data analysis
In order to analyze the collected data, we adopted different techniques as follows.
1. Growth rate or percentage change- p 1−p0
p 0×100
Where,
P1= value of this year
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P0= value of previous year
2. Market share or percentage contribution- particular value
total×100
3. Average- ∑ total of observations
totalobservations
4. Employee productivity by types of banks –totalr emittance of particular bank
totlanumber of employees
5. Branch productivity by types of banks- totalremittance of particular bank
totalnumber of branc h es
6. Regression analysis-
Equation- Ŷ = a + b1X1 + b2X2
Dependent Variable Ŷ = Remittance
Independent Variable X1 = number of employee
Independent Variable X2 = number of branch
Here, b1 is the slope of X1 and b2 is the slope of X2.
7. Hypothesis testing-
a. Null Hypothesis- Ho: β 1=β 2=0
Number of Employees and Branches has no impact on amount of remittances received by
bank.
b. Alternative Hypothesis- β 1 ≠ β 2≠ 0
Number of Employees and Branches has impact on amount of remittances received by
bank.
β 1 is the estimator of b1 and β 2 is the estimator b2.
c. Confidence level- 5%
Hypotheses will be tested based on the Comparison of F distribution.
8. Graphical presentation- analyzed data will be presented through various types of charts
appropriate to the results, for example; histogram, bar charts, pie charts and cone etc.
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Chapter 3: Literature review
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3.1 Theoretical review
Remittance
Remittance refers to the portion of migrant income that, in the form of either funds or goods, flows back
into the country of origin, primarily to support families back home. The greater share of these largely
monetary flows benefits developing countries.
An ‘International remittance transfer’ refers to the portion of the earnings that an international migrant
worker earns in the country of employment, and sends back to another individual, often a family member
who remains in the home country. Therefore, they are cross border person to person payments of
relatively low value. The majority of recipients largely depend on remittances to meet day to day living
expenses, emergency needs, housing, education of children, healthcare, investments in small businesses,
repayment of debt etc. Accordingly, remittances play an important role in improving the standard of
living of recipients.
Types of remittance
Foreign remittance means remittance of foreign currencies from one place or persons to another place or
person.
All foreign remittance transactions are grouped into two broad categories-
I. Outward Remittance and
II. Inward Remittance
Outward Remittance:
Outward remittance refers to the sending of remittance to the foreign country. When the employees send
their earning to their home country then this transfer is considered as outward remittance for the country
where they are working.
Inward Remittance:
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Inward remittance refers to the inflow of foreign currency in a country sent by the employees working
outside the country.
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Steps in a typical remittance transaction
Any person or institution providing remittance services as a business is known as a remittance service
provider (RSP). The sender, the recipient and the remittance service provider (RSP) constitute the nexus
in a remittance transfer. Generally two RSPs are involved in a remittance transfer.
I. The RSP operating in the sending country is called the ‘capturing RSP’,
II. The other RSP in the receiving country is called the ‘disbursing RSP’.
Both RSPs work jointly to provide the service, with or without own offices/branches/agents. The RSPs
are networked to send and receive remittances. Each has physical or virtual access points in the
remittance delivery chain.
A typical remittance transaction takes place in three steps.
Stage 1
The sender/remitter pays the remittance to the capturing RSP (Remittance Service Provider) using cash,
cheque, money order, debit card or a debit instruction. The channel of instructions could be sent by e-
mail, phone or through the Internet, providing the essential information to the capturing RSP, enabling it
to forward the same along with the funds to the recipient. The funds transfer relating to a remittance too
involves a messaging arrangement to channel information from the capturing RSP to the disbursing RSP
and a settlement arrangement for the fund movement. These arrangements vary between different types of
remittance services, but will always have common features, i.e., a network and a procedure to interact
with access points to capture and disburse funds, depending on the way the network of access points is
created and linked.
Stage 2
After getting funds from remitters the capturing RSP instruct delivering RSP to deliver fund to the
recipients. This instruction may be given through mail, message, phone or letter.
Stage 3
After getting instruction from capturing RSP, delivering RSP makes payment to the recipients. Here
recipients need to show code or pin given by capturing RSP.
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General Principles governing International Remittance Services
The ‘General Principles for International Remittance Services’ have been designed with the public policy
objective: Remittance services should be safe and efficient.
In order to achieve this public policy objective, the markets for the remittance services should be
contestable, transparent, accessible and sound. Such market should give remitters and receivers:
clear information about the price and other features of the remittance services (the remittance
industry should be transparent);
easy access to remittance services (the remittance industry should be accessible); and
reasonable protection from operational failures and criminal abuse (the remittance industry
should be sound and safe).
Channel of Remittances
Migrant workers generally transfer their remittances either through formal or informal channels.
Formal channels
Formal channel refers to the official Wage Earner’s Scheme (WES) and to all recorded foreign exchange
transactions. It includes principally demand drafts, telegraphic transfers and postal orders, channeled
through banks or post offices. Officially, transfer of remittance takes place through demand draft issued
by a bank or an exchange house; travelers’ checks ;telegraphic transfer; postal order; account to account
transfer; automatic teller machine (ATM) facilities; electronic transfer and in kind.
TT-Telegraphic Transfer
TT is the quickest method of transferring funds from one place to another. The remitting branch
sends a telegraphic/ telephonic/ Fax message to the branch at the other end, to pay a certain sum
of money to a named payee.
DD-Demand Draft
Remittances are frequently sent through demand draft in Taka issued by a bank or an exchange
house in favor of a nominee of migrant. Usually the draft is sent by post or in emergency by
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courier service. The sender in the host country takes out a demand draft from a bank or from an
exchange house and sends it to the receiving party in Bangladesh through regular postal services
or other means. The bank or the exchange houses in the destination country charges a
commission, which varies from bank to bank, for their service. So, the transaction cost of the
sender is the service charge plus the postal expenses
PO-Pay Order
It is process of money transfer from payer to payee within a certain clearing area through banking
channel. Pay Order can be issued in favor of the payee with commissions paid. The Pay Order
can be made either from the account of the issuer or by giving the account to the Bank if the
issuer has no account with Bank
Other Formal channels
There have some other official channel to transfer remittance. Those are as follows:
Account to account transfer.
Electronic transfer.
Automatic teller machine (ATM) facilities.
Informal channels
Informal channels refer to various means and ways of sending remittances in cash or kind into
Bangladesh with no official approval or record. These secret flows do not appear in government statistics
nor do they figure in government policy making.
Transfer in cash:
Available devices in the informal channel are hundi, home bound friends and relatives, personally
hand carried cash without declaration, and in the form of visa/work permit. Hundi is the most
popular method of transfer among the unofficial channels.
Informal transfer can be broadly classified into two types: cash and kind.
Cash/ Traveler's cheques:
Travelers’ cheques are also used as a means to send remittance. However they will be treated as
official transaction when they are encashed through banks. Migrants or their friends and relatives
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bring foreign exchange without declaring it to the appropriate authority. This can be in the form
of cash or traveler’s cheques. This foreign exchange can either be sold to black market dealers in
foreign exchange or kept for personal use.
Hundi system:
Hundi/ Money Courier is the most common among the unofficial channels of transfer. The Hundi
operator/agent is, in fact, an illegal foreign exchange dealer.
Steps in Hundi operation
Transfer in kind
(i)Under Baggage Rules, Bangladeshis are allowed to bring about consumer durables, gold,
electronics items, etc. for personal use. Many migrants subsequently sell most of these consumer
goods for Taka, even though this is prohibited
(ii) Gold and consumer durables are transferred to Bangladesh through different Seaports and
Airports.
Compared to formal channels, the informal channels are not only less expensive but also more convenient
and easily accessible. The fact that informal agents can deliver money on short notice with almost no
paper work and minimal commission requirement and can reach remote areas of the country very easily
makes the unofficial channels attractive to migrant workers and their families.
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Remitter gives the Hundi operator in host country
the currency of that country or any acceptable currency by the operator.
The agent in home country is contacted by Hundy
agent in the Host country
The sub-agent pays the money to the relative of the
remitter.
3.2 Empirical review
Determinants of Remittances
A number of factors might determine remittances. Remittances may be motivated by self-interest. For
example, people might send remittances to enhance their social status or keep a connection with parents
in the hope of inheriting their wealth. Remittances could also be viewed as repayments of loans that
financed the cost of migration.
Remittances might also be motivated by altruism or family arrangements. An insurance motive is a good
example: If some family members are located elsewhere, the welfare of the family would be less affected
by economic fluctuations in a given country. When family members in one country are hit by an adverse
shock, family members in another could help them to overcome this hardship.
In this situation migrants would decide how much to send home depending on both their own income and
the income of their family at home. Aggregate remittances would therefore depend on wages in the host
economy, income in the home economy, and the total number of migrants.
Elbadawi and Rocha (1992) examine data for four North African and two European countries and find
that remittances are positively associated with the income level of the host country and the stock of
migrants. Similarly, El-Sakka and McNabb (1999) find in data from Egypt that remittances are positively
associated with host county income.
Remittance and economic development:
The official recorded remittances are much lower than the actual remittances that take place through
official and unofficial channels. Remittances through informal channels could add at least 50 percent to
the globally recorded flows (World Bank, 2006, ibid. 85). In times of economic distress, remittances may
actually be countercyclical to the extent that migrants are motivated by altruism and send more money
home. The stability of these inflows also opens up an opportunity for developing countries to borrow at
lower cost in international capital markets by securitizing future flows of remittances (International
Monetary Fund (IMF), 2007).
Link between remittances and household development
Rapoport and Docquier (2006) show how the household members who are left behind, use migrants’
remittances. Remittances are used to repay loans taken to finance migration or education, and insurance
and strategic motives. It also directly contributes to household income, allowing households to purchase
more assets; enables higher investment in business; and facilitate buying more goods, including education
and health inputs.
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Yang (2004), and Woodruff and Zenteno (2001) suggest that, at the household level, remittances can spur
entrepreneurial activity.
Link between remittances and GDP
Studies examining the relationship between remittances and GDP growth show mixed results. Faini
(2002, 2003) finds a positive relationship between growth and remittances using cross-country data.
Similarly, positive relationship between the two is also supported by several studies for Mexican
economy. For example, Adelman and Taylor (1990) find that “every dollar Mexican migrants send back
home or bring back with them increases Mexico’s GNP from anywhere between $2.69 and $3.17,
depending on which household income group received the remittances”. Durand et al(1996) suggest that
for every $2 billion in remittances that entered Mexico, production in the economy increased by over a
$6.5 billion.
Link between remittance, consumption and investment
Developing countries should capitalize the amount of remittance inflows and use it for investment to
promote development and inclusive growth. Empirical evidence in this regard shows that the inflow of
remittances by the migrant workers and professionals from a developing
country helps in increasing the investment activities in the recipient country.
Adams (2005a) examines the impact of remittances on the spending behavior of households for
consumption and investments. The findings show that the households receiving international remittances
spend more at the margin on investment goods, especially, on housing and education, and spend less, at
the margin, on food items.
Link between remittances, poverty and welfare
Adams and Page (2005) used household surveys of 71 developing countries to examine the impact of
international migration on poverty. Controlling for the level of income, income inequality, and
geographical region, they find that international remittances have a strong statistically significant negative
impact on poverty. A 10 per cent increase in the share of remittances in a country’s GDP, lead to a
reduction of 1.6 per cent of people living in poverty.
Link between remittances and foreign exchange
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Remittances constitute important sources of foreign exchange earnings for many households in
developing countries. While remittances cannot be considered as a substitute for FDI and other official
development assistance, it may ease short-run foreign exchange constraints at times other financial flows
decline due to external factors. Ranjan and Subramanyam (2005) find that remittances have constituted an
important stimulus to domestic demand.
Link between remittances and employment
Frank (2001) argues that the families receiving international remittances severely curtail their work
efforts. Similarly, Rodriguez and Tiongson (2001) for Manila and Funkhouser (1992) for Managua
conclude that remittances reduce employment. Tiongson (2001) conclude that, when migration occurs,
non-migrant relatives receive remittances, which they perceive as additional non-labor income. An
increase in non-labor income then reduces their participation in local labor markets.
In contrast to these studies, Cox-Edwards and Rodriguez-Oreggia (2006) find that remittances have no
impact on the labor supply of household members in Mexico. However, at macro level, when the inflow
of remittances is used for the investment, the non-migrated families get benefited by seeking
employment.
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Chapter 4: Remittance Scenario of Bangladesh
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4.1 Remittance and economic development in Bangladesh
Since 1976, remittance earnings have been playing a significant role in the economic development of
Bangladesh. The role of inward remittance on the economy has in fact been gradually increasing during
the last two decades. Flow of workers’ remittances in Bangladesh exhibited a continuously increasing
trend over the last 30 years in both absolute and relative terms. Total remittance to Bangladesh was only
USD 24 million in 1976. Bangladesh was the 10th largest recipient of remittances among the developing
countries considering the average for the period 1990 to 2005 (IFS, October 2007). It ranked 14 th among
all of the remittance-recipient countries in terms of the amount of remittances received in 2005 (Global
Economic Prospects, GEP 2006, WB). Flow of worker’s remittances in Bangladesh reached new heights
at the end of fiscal year, FY07 as the remittance-GDP ratio jumped to 9.4 percent from 7.7 percent in
FY06. Average remittances relative to imports and exports increased to 38 and 49 percent respectively
during FY02-FY07 period from 22 and 31 percent respectively in FY97-FY01 period.
A sizeable number of Bangladeshi labor forces are employed in different parts of the world including the
Middle East. A total of 6.91 lakh Bangladeshi workers went abroad for employment during FY 2011-12.
Remittance during 2011-12 is about US$ 12.84 billion which is more than 10.24 percent that of the
average of the last year.
The role of remittances in the economies of labor sending countries such as Bangladesh is assuming
increasing importance. The growth in remittance is likely to remain one of the key factors in
maintaining a healthy level of foreign exchange reserves. The growing contribution of inward remittance
towards maintaining a healthy foreign exchange reserve (FER) has been helping Bangladesh to make up
the deficit between total export and import and maintaining the balance of payment (BOP) situation,
thereby ensuring macroeconomic stability.
The overall economic development of Bangladesh is very much dependent on increasing productive
investment opportunities and reducing poverty. Remittance has helped Bangladesh to make investments
in expanding the manufacturing sector and modernizing its agriculture. These have helped the country to
increase its exports of manufactured goods. Therefore, remittance being used as an important source of
investment has been a key driver of economic development for Bangladesh.
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4.2 Cost and benefit of overseas employment
Worker migration results in a mixture of benefits and costs for Bangladesh.
The costs may include
The loss of the labor supply in which substantial amounts of human capital are invested,
Possible distortions in the age structure of the population, rural depopulation and,
A “brain drain” to developed countries.
On the other hand benefits are,
A reduction in social tensions caused by unemployment and/or underemployment,
Skill acquisition of returning migrants and,
Most significantly, money transfers from migrants to their families back home.
4.3 Remittance management by private commercial banks
To assist and make it simple for the remitter to remit hard earned money to Bangladesh, both Private
conventional and Islamic banks started providing remittance services through their local & foreign
correspondents. Remittance has become a good source of income for some of the banks with strong
network abroad. They collect remittance through their global partners and disburse them to the customers.
In order to make the remittance transfer process speedy and smooth they build widespread network,
install updated software, and train their employees.
Earlier the Nationalized Commercial Banks (NCBs) were the main official channels to transfer
remittance. The NCBs have some overseas branches in United States, Europe and Middle East. Moreover,
NCBs have agreement with the foreign banks in many countries for smooth transferring of remittance.
But the process of transferring remittance through NCBs is lengthy and takes some days. So, now a day
the private commercial banks (PCBs) have become more aggressive in remittance business providing
quick and reliable services and attracting the Bangladeshi wage earners to send money home through
banking channel. Currently, Islamic Banks have over 120 international correspondents, mostly in the
Middle East, who assist in channeling inward remittances
Features of Banks one-stop remittance delivery services are as follows:
Deliver money without any charges
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Assure confidentiality in transactions
On line account credit facilities to those who have accounts with bank
EFT/TT Services
Assist in opening Wage Earners Accounts
Assist in opening accounts under different types of Savings Schemes
Inward foreign remittance is one of major sources of the foreign currency reserve of the country and in
order to encourage inflow of remittances through banking channel from the Non-resident Bangladeshis,
Private commercial Banks provide quality service for repatriation and collection of remittances with the
help of its foreign correspondents and trained personnel.
4.4 Remittance management system
It is a customized process of Private commercial Banks. This is totally bank’s own system where foreign
remittance was processed. Basically bank collects the remittance from the exchange houses of different
foreign countries. This exchange house collects money from the customers and then sends information
about the customers to the bank. There are two processes for sending the information to the bank.
I. EFT (Electronic Fund Transfer)
II. SWIFT (Society for worldwide interbank fund telecommunication)
After receiving this data bank process this data with the help of customized software which is prepared
for process this data. This software is called Remittance Management System (RMS) software. Some
high quality, energetic, IT specialist and dynamic young group are engage to ensure the faster and swift
service to the customers.
The exchange house collect information from the customer’s regarding their -
PON (Payment Order No)
Date
Beneficiary Name
Account Name
Amount
Remitter Name
Beneficiary Branch Name etc.
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Typically, the cost consists of expenses on the channel and network involved in transaction processing,
franchise licensing, compliance with regulatory requirements, marketing and administration (staff cost,
security and rental of premises). Remittances are attracted not only by lower prices, but also by safety.
Since banks are regulated, they offer safer methods to send money.
4.5 Drawbacks in banks’ remittance programs
First, most programs are available only to customers who have bank accounts. This requirement poses a
barrier for immigrants who are reluctant to open bank accounts for reasons such as unfamiliarity, distrust
of banks, the cost of maintaining an account, or identification restrictions.
Second, banks tend to have limited business hours, a limited presence in immigrant communities, and less
institutional commitment to meet language and cultural needs.
Third, banks have relatively weaker distribution networks in receiving countries and longer processing
times than money transfer operators.
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Chapter 5: Overview of the Studied Organization
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5.1 Overview of the conventional commercial banksThis section is concerned with the overview of the studied organizations for this report. Here all the local
private commercials bank and Islamic banks are sampled to analyze the issue. The brief knock of the
establishment of the banks and their generation is given below table:
Table 1: Overview of the conventional commercial banks
Serial No. Name of Bank Date of
Establishment
Generation
1 Pubali Bank Limited 1984 First Generation
2 Uttara Bank Limited 1972 First Generation
3 Arab Bangladesh Bank Limited 1982 First Generation
4 National Bank Limited 1983 First Generation
5 The City Bank Limited 1983 First Generation
6 IFIC Bank Limited 1983 First Generation
7 United Commercial Bank Limited 1983 First Generation
8 Eastern Bank Limited 1992 Second Generation
9 NCC Bank Limited 1993 Second Generation
10 Prime Bank Limited 1995 Second Generation
11 Southeast Bank Limited 1995 Second Generation
12 Dhaka Bank Limited 1995 Second Generation
13 Dutch Bangla Bank Limited 1996 Second Generation
14 Mercantile Bank Limited 1999 Second Generation
15 Standard Bank Limited 1999 Second Generation
16 One Bank Limited 1999 Second Generation
17 Bangladesh Commerce Bank Limited 1999 Second Generation
18 Mutual Trust Bank Limited 1999 Second Generation
19 The Premier Bank Limited 1999 Second Generation
20 Bank Asia Limited 1999 Second Generation
21 Trust Bank Limited 1999 Second Generation
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22 Jamuna Bank Limited 2001 Third Generation
23 BRAC Bank Limited 2001 Third Generation
5.2 Overview of the Islamic banksThe following section shows the overview of seven selected Islamic banks operating in Bangladesh
Table 2: Overview of the Islamic banks
Serial No. Name of Bank Date of
Establishment
Generation
1 Islami Bank Bangladesh Ltd 1983 First Generation
2 ICB Islamic Bank 1987 First Generation
3 Al-arafah Islami Bank Limited 1995 Second Generation
4 Social Islami Bank Limited 1995 Second Generation
5 First Security Islami Bank Limited 1999 Second Generation
6 Exim Bank Limited 2004 Second Generation
7 Shahjalal Islami Bank Limited 2001 Third Generation
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Chapter 6: Analysis and Discussion
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The analysis portion of the report starts with the overview of the number of expatriates of Bangladesh
over different period of time. And it also shed light on the amount of remittances over year and from
different countries of the world. Then a broad discussion is conducted on the comparative analysis of
selected conventional private commercial banks and Islamic banks in terms of total remittance earned,
percentage of remittance by both types of banks, growth rate of remittance and the productivity of
remittances.
6.1 Number of expatriate Bangladeshis and their remittances
This table shows the number of expatriate Bangladeshis and their remittances
Table 3: Number of expatriate Bangladeshis and their remittances