Report on Foreign Risk Management by Banks in Bangladesh

UNIVERSITY OF DHAKA DEPARTMENT OF ACCOUNTING & INFORMATION SYSTEMS BBA PROGRAMME

COURSE: LAWS AND THEORIES OF BANKING AND BANK ACCOUNTS (3101)

SUBMITTED TO: BILKIS AKHTER

LECTURER DEPARTMENT OF ACCOUNTING & INFORMATION SYSTEMS

SUBMITTED BY:

NAME DEVJANI DEY BRINDA ROKSANA AKTAR KAZI FAHMIDA KHATUN RAHIMA AKTER ID NO. 15001 15011 15051 15075

DATE OF SUBMISSION: 25.04.2011

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A Report on Foreign Exchange Risk Management by Banks in Bangladesh

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CONTENTS

Pages Acknowledgments Executive Summary Literature Review I. Introduction 1.1 Origin of the report 1.2 Objective of the report 1.3 Outline of the report II. Foreign Exchange Risk Management: Basic Concept and Techniques 2.1 Introduction 2.2 Foreign Exchange Risks faced by banks 2.3 Foreign Exchange Risk: background and evolution 2.4 Foreign Exchange Risk: Process and techniques 2.5 Management processes of specific risks III. A survey on 2 commercial banks of Bangladesh 3.1 Risk perceptions 3.2 Risk management system and process 3.3 Other issues and concern 3.4 Risk management in commercial banks: An assessment IV. Conclusion 4 5 6 7

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ACKNOWLEDGEMENTS

A number of people have contributed with comments, suggestions, and input at different stages of writing of this paper. At first we would like to thank our honorable course instructor, Bilkis Akhter who encouraged us to apply our achieved theoretical knowledge in a broad practical way and gave valuable suggestions on the proposal of the paper. The study surveyed foreign exchange risk management issues on banks. We are grateful to Mutual Trust Bank and Islamic Bank of Bangladesh that have responded to our questionnaire. We gratefully acknowledge the cooperation and assistance of the following persons in providing us with all the relevant information: 1) Md. Mossaraf Hossain Senior Vice- President Islamic Bank of Bangladesh. 2) Md. Mahabubur Rahman Assistant Vice- President Mutual Trust Bank Ltd. 3) Md. Ataur...