Role of Islamic Finance in the Operation of Sme: a Study on Fsibl

1.0- Introduction:

Private Banks play a great role in economic development of a country. Bangladesh is a least developing country and its economy is agro based. Today’s Economic policy is concerned to obtain the optimum economic condition in a country’s economy. Banking sector and banking activities are playing a vital and important role to achieve that optimum goal of the economy. Now banks offer the widest range of financial services and perform a lot of financial functions. Thus banks prove that they are the key factor for the business and economy as well. Banking sector of the world is also contributed in the present global economy. To establish a strong banking sector it is required to have good study in banking operations. The successful running of banking business depends upon effective banks.

In Bangladesh By increasing a dynamic small and medium enterprise (SME) sector is seen as a priority amongst economic development goals, in both developed and emerging economies. SMEs are a primary driver for job creation and it also contributes on GDP growth. It is greatly contribute to economic diversification and social stability and its play an important role in private sector development.

First Security Islami Bank Ltd (FSIBL) is one of them who perform SME finance in this country. First Security Islami Bank Ltd is the Third generation bank company was incorporated in Bangladesh on 29 August 1999 as a banking company under Companies Act 1994 to carry on banking business. It obtained permission from Bangladesh Bank on 22 September 1999 to commence its business.

FSIBL gives more emphasize on the SME loan because, in Bangladesh the SME loan is much more popular from another business loan. At the same time the percentage of new entrepreneur are increasing day by day. So as a business loan of SME is much popular and it has much more opportunity to grow up in Bangladesh.

1.1- Origin of the Report:

This report has been prepared as a requirement of the...