Documentof Jbl

1.1 Introduction

Bank plays an important role in the business sector and in the industrialization of a country. Bank is a financial institution that collects society’s surplus cash and provides a part of that as loan with a view to earning profit. So we can simply say that Bank is financial organization that deals with money. According to section – 5 of the Bank Company Act -1991, a company transacting the business of banking is called a banking company. A manufacturing or trading company will not be deemed to be a bank company even if does accept deposits from the public for financing its manufacturing and trading activities.

Now a day it is completely impossible to think a country without a bank, because banks play a diversified role in the development of an economy. The most important task of bank is building of capital which is the key factor of the development of an economy. Banking sector helps to flourish the industrial sector by supplying the capital of the industries and other services like intermediaries role in case of foreign business. It is impossible to do foreign trade with out the help of bank. Banks provide services that help the business sector a lot to carry on the business. Banks also help to establish good faith among business persons.

Bangladesh is a developing country. The growth of the economy of Bangladesh is greatly depends on the performance of the banking sector. Banks secure money of the society. Government takes various monetary policies. These policies are implemented with the help of banking sector.

The Banking Sector of Bangladesh comprises of four categories of scheduled banks. These are-

• Nationalized Commercial Banks (NCBs).

• Government Owned Development Finance Institutions (DFIs).

• Private Commercial Banks (PCBs).

• Foreign Commercial Banks (FCBs).

In Jamuna Bank ,bank loans specially SME loan are greatly emphasized because it is major source of bank income. It is very important of the national...