Download - standard bank assignment..(Law).docx
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 1/23
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 2/23
ASSIGNMENT ON
COMMERCIAL BANK(STANDARD BANK
LTD.)
BANKING LAW &
PRACTICE
SUBMITTED TO
SUBMITTED BY
SK. ALAMGIR HOSSAIN
GROUP NO- 21
LECTURER 7TH
BATCH, BBA.DEPARTMENT OF FINANCE
DEPARTMENT OF FINANCE
AGANNATH UNI!ERSITY
AGANNATH UNI!ERSITY
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 3/23
DATE OF SUBMISSION " 2#$%$2%1'
G*+ /
NAME ID NOKISHANDATTA B-12%2%%%0EASIN ARAFAT B-12%2%%2MD.AKRAM
HOSSAIN
B-12%2%%
YEAKUBHOSSAIN
B-12%2%%#%
MD.RASAD
AMIN
B-11%2%%
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 4/23
Introduction
The services of commercial bank primarily revolve round
mobilization of deposits and lending the same to those needing
nance for their business and other activities. A broader denition
of a bank is any nancial institution that receives, collects,
transfers, pays, exchanges, lends, invests, or safeguards money
for its customers.
Commercial bank
Commercial banks specialize in loans of commercial nature
especially short term loans to industries and businesses and
individuals.
Commercial banks are the oldest fnancial institutions. The
occupy and important position in the fnancial landscape
o nearly every country.
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 5/23
Standard Bank Limited (SBL) was incorporated as a ublic
!imited Company on "ay ##, #$$$ under the Companies Act,
#$$% and the &ank achieved satisfactory progress from its
commercial operations on 'une (), #$$$. *&! has introduced
several new products on credit and deposit schemes. +t also goes
for Corporate and etail &anking etc. The &ank also participated
in fund *yndication with other &anks. Through all these myriad
activities *&! has created a positive impact in the "arket.
b!ectives
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 6/23
- To be a dynamic leader in the nancial market in innovating
new products as to the needs of the society.
- To earn positive economic value addition /0A1 each year to
come.
- To top the list in respect of cost e2ciency of all the
commercial &anks.
- To become one of the best nancial institutions in
&angladesh economy participating in the most signicant
segments of business market that we serve.
"ision
To be a modern &ank having the ob3ect of building a sound
national economy and to contribute signicantly to the ublic
/xche4uer.
#ission
To be the best private commercial bank in &angladesh in terms of
e2ciency, capital ade4uacy, asset 4uality, sound managementand protability.
$ctivities o Standard Bank
5eneral banking is the front6side banking service department. +t
provides those customers who come fre4uently and those
customers who come one time in banking for en3oying ancillary
services. The o2cers of this department have to perform the
following tasks7
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 7/23
#1 Account opening and close.
81 Collection of cash, che4ue from customers.
)1 +ssuing of 9:, pay orders, che4ue books and demand draft.
%1 Assisting customer to open various deposit scheme.
;1 Conducting clearing house activities.
<1 Collection of local and outward bills.
CS% $ctivities
*&! donates crest and che4ue to war wounded 9reedom
9ighter
*&! donates a che4ue at deceased Army 9amily of
&: "utiny.
*&! donates a che4ue for 9lood 0ictim people
*&! serves the people setting up a temporary eye
treatment pro3ect
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 8/23
*&! donates che4ue = crest to meritorious student
*&! contributes donation for 0ictims of &: "utiny
*&! has donated computers to *chool *tudents at
*avar
%ole o Commercial Banks in
&conomic 'evelopment
The &anking *ector has for centuries now formed one of the pillars of economic
prosperity. +ndeed history provides us with some starting information regarding how
banks provided nance for imperialist ventures in newly ac4uired colonies. >ver
time banks have formed an important part in providing an avenue for both savings
and investments.
!and, !abor, capital and entrepreneurs are the basic economic resources available
to business. ?owever, to make the use of these resources, a business re4uires
nance to purchase of the land, hire labor, pay for capital goods and pay for
individuals with specialized skills. :etail role of commercial banks in economic
development is given below7
• Trade 'evelopment
The commercial banks provide capital, technical assistance and other facilities to
businessmen according to their need, which leads to development in trade.
$riculture 'evelopment
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 9/23
Commercial banks nance the most important sector of the developing economics
i.e. agriculture, short, medium and long6term loans are provided for the purchase of
seeds and fertilizer, installation of tube wells, construction of warehouses, purchase
of tractor and thresher etc.
•
Industrial 'evelopment The countries, which concentrated on industrial sector made rapid economic
development. *outh @orea, "alaysia, Taiwan, ?ong @ong and +ndonesia have
recently developed their industrial sector with the help of commercial banks.
• Capital ormation
Commercial banks help in increasing the rate of capital formation in a country.
Capital formation means increase in number of production units, technology, plant
and machinery. They nance the pro3ects responsible for increasing the rate of
capital formation.
• 'evelopment o orein Trade
Commercial banks help the traders of two dierent countries to undertake business.
!etter of credit is issued by the importerBs bank to the exporters to ensure the
payment. The banks also arrange foreign exchange.
• Transer o #oney
Commercial banks provide the facility of transferring funds from one place to
another which leads to the growth of trade.
• #ore *roduction
A good banking system ensures more production in all sectors of the economy. +t
increases the production capabilities of the economy by strengthening capital
structure and division of labor
• 'evelopment o Transport
The commercial banks nanced the transport sector. +t has reduced unemployment
on one hand and increased the transport facility on the other hand. emote areas
are linked to main markets through developed transport system.
• Sae Custody
The business concerns and individuals can make themselves tension free by
depositing their surplus money in banks. The banks also provide them the facility of
lockers to keep their precious articles and necessary documents safe.
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 10/23
• Increase in Savin
Commercial banks persuade the people to save more. :ierent saving schemes
with attractive interest rates are introduced for this purpose. umber of bank
branches is opened in urban and rural areas.
• Construction o +ouses
Commercial banks provide credit facilities to their customers for the purchase or
construction of houses.
• $ssistance to ,overnment
&y providing funds to government for development programs, the commercial
banks share the government for economic stability.
• Increase in &mployment
A countryBs economic prosperity depends on the development of trade, commerce
industry, agriculture, transport and communication etc. These sectors are nanced
by the commercial banks and employment opportunities are increasing.
• Savin in #etallic %eserve
Che4ues and drafts etc works like money. +n this way the need of precious metals to
make coins reduces and metallic reserve of the country can be utilized on other
important matters
• Credit Creation
Commercial banks are called the factories of credit. They advance much more than
what the collect from people in the form of deposits. Through the process of credit
creation, commercial banks provide nance to all sectors of the economy thus
making them more developed than before.
• *roper use o #oney
eople deposit their saving in the banks, so the scattered money becomes a huge
amount in the way, which can be used for dierent pro3ects in a proper way.
• inancial $dvices
Commercial banks also give useful nancial advices to promote the business of their
customers, besides credit facilities.
• Increase in Investment
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 11/23
Commercial banks mobilize savings of the people. They make them available to the
farmers, traders and industrialists for the development of agriculture, trade and
industry.
• Success o #onetary *olicy
Dnder the supervision of central bank, all scheduled commercial banks make eort
for the success and ob3ectives of monetary policy. This 3oined eort of commercial
banks makes the economic development possible.
• -se o #odern Technoloy
The use of modern technology in less developed countries is only possible in the
presence of developed commercial banking as it can be the main source of their
funds.
These funds are utilized for the import of modern technology from developed
countries.
• &port *romotion Cells
+n order to boost the exports of the country, the banks have established export
promotion cells for the information and guidance to the exporters.
• &conomic *rosperity
/conomic prosperity of a country depends on number of factors including the
development of commercial banking. A sound banking system promotes the
economic status of the people by providing them short, medium and long6term
loans.
• Trainin Center
Commercial banks established many trading centers for their employees to
modernize the banking system of a country. +n this way the banking experts
enhance their abilities and contribute towards the development of country.
Types o deposit products
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 12/23
- Current :eposit
- *avings :eposit
- *hort Term :eposit
- 9ixed :eposit
- :eposits Dnder *cheme
SBL %eular 'eposit *roramme ( S%'* )
E +f any monthly installment remains unpaid for ; ve1
consecutive months, the account will be closed automatically and
the account will be settled as detailed other page 76
%elationship/
Tenure$pplied Interest
!ess than #one1
yearo interest
"ore than # year
but less ) years*avings ate
"ore than ) yearsbut less ; years
"atured value of ) yearsand rest as per prevailing
interest rate on savings rate
"ore than ; years
but less #( years
"atured value of ; years
and rest as per prevailing
interest rate on savings rate.
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 13/23
+f failure to pay monthly installment on due dates heFshe will pay
penalty of Tk. 8(F6Twenty1 next subse4uent installment.
#onthly Installment0 Tenure and #aturity "alue
1ill be as per ollo1in Schedule23
Installm
ent /
4ears
566 766 8666 9666 9766 7666 86666
) Gears#8,)
H;
8(,<
8;
%#,8%( I8,%H(#,(),#
((
8,(<,8
((
%,#8,%%
;
; Gears88,;
$;
)H,<
%;H;,8%;
#,;(,;
#(
#,II,#
%;
),H<,)
8;
H,;8,I#
;
H Gears)%,H
((
;H,I
8(
#,#;,;
$;
8,)#,#
<;
8,I$,(
;;
;,HI,)
((
##,;H,(
I(
#( Gears;H,#
H(
$;,)
)(
#,$(,;
H(
),I#,8
%;
%,H<,I
;(
$,;%,%
)(
#$,($,H
I;
SBL %eular Income *roramme ( S%I* )
#. *&! egular +ncome rogram is an income program, which
helps you to earn a monthly xed
amount on your deposits at *&! for period of # year.
8. :eposit of Tk. ;(,(((F6 9ifty Thousand1 and multiples thereof
but maximum limit of
Tk. 8;,((,(((F6 Taka Twenty 9ive !ac1 and Tk. ;(,((,(((F6
Taka 9ifty !ac1 at a time for the
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 14/23
individual customer and the company respectively. :epositor
will earn #8 e4ual monthly prot.
'epositor can earn money due date as per ollo1in
schedule23
'eposit
$mount
7606
66
806606
66
906606
66
506606
66
:066066
6 ;
above
"onthly +nterest
ayable%(( I(( #,<(( 8,%((
),8(( =
Above
SBL 'ouble Income *lus ( 'I< ) *roramme
#. :eposit of Tk. #(,(((F6 Ten Thousand1 and multiples thereof
will be acceptable under this
program.
8. A specially designed receipt shall be issued for the deposit
under this program.
). The instrument shall be issued for H years.%. At maturity after H years the depositor will get double plus
:+J1.
;. +f any depositor intends to withdraw his deposit before
maturity, the following rules will apply 76
• o benet including interestFprot shall be allowed for pre6
mature encashment within # one1
year.
• +f the accountsFdeposits are closedFen6cashed after # one1
year of its opening interest shall
be allowed on the deposit at prevailing 9: +nterest ate.
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 15/23
<. The instrument will be acceptable as collateral security against
any investment sub3ect to
registering lien with the issuing &ranch.
H. +n case of instrument get lost, the procedure for the issuance of
a duplicate receipt will be thesame as applicable in case of loss of 9:.
Types o loan products
• *ecured overdraft
• 5eneral !oan
• ?ouse building !oan
• *ta !oan
• Transport !oan
• !oan Against Trust eceipt
• ayment against document
• acking Credit
• !ease 9inance
• *"/
• Consumer Credit
• &ill urchase
Consumer Credit Scheme 2
!ending rate has been shown in the following table where xed
rate &angladesh bank instructed rate1 and mid6rate are given.
&ank may re6x K#.;( over the mid rate considering the risk
involvement. These rates are eective from 'uly (#, 8(#%.
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 16/23
SL *articulars ied %ate
#id %ate
(# Consumer Credit *cheme *ta1 #8.((L 66(8 Consumer Credit *cheme Commercial1 66 #<.;(L
#.((L additional interest rate will be charged for default inpaymentF ad3ustment. All other charges, commissions and fees
shall remain unchanged.
+ouse Buildin Loan 2
!ending rate has been shown in the following table where xed
rate &angladesh bank instructed rate1 and mid6rate are given.
&ank may re6x K#.;( over the mid rate considering the risk
involvement. These rates are eective from 'uly (#, 8(#%.
SL *articularsied
%ate
#id
%ate
68 +ouse Buildin Loan (Sta=) >.66? 33
69 +ouse Buildin Loan
(Commercial)
65 +ouse Buildin Loan
(%esidential)33 [email protected]?
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 17/23
#.((L additional interest rate will be charged for default in
paymentF ad3ustment. All other charges, commissions and fees
shall remain unchanged.
Aecessary papers and documents There are various kinds of &ank Accounts which people are
looking for. These accountBs opening go through some procedure.
e4uired information for opening a bank account varies from bank
to bank. 9ollowing are the most common information re4uired
with every bank.
Individual and oint $ccount (Salary and Current)• &ankBs prescribed Account opening application form to be
signed by the applicant in front of respective bank
personnel1,
• Two assport *ize hotographs of the Account holders1
attested by the introducer,
• *pecimen *ignature Card To be signed by the applicant in
front of respective bank personnel1,• /stimated Transaction role, and
• Any of the following +dentication :ocuments Current valid
passportF 0alid driving licenseF 0oter +: CardF Armed 9orces
+: cardF A &angladeshi employer +: card bearing the
photograph and signature of the applicantF A certicate from
any local government organs such as Dnion Council
chairman, ward commissioner etc1. +n this case the certier
should attest applicantBs photograph along with signatureF Trade license with photograph can be accepted for
individualBs identication1, i.e. any document showing
photograph, signature and address of the customer issued
from a dependable authority "anagers and *upervisors
have to apply 3udgment1 are acceptable.
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 18/23
• T+ umber.
• >ne assport *ize hotographs of the ominees1 attested
by the Account holder.
All photocopies should be veried with the original and attestedby an authorized o2cer of the &ank.
Limited Company $ccount
• &ankBs prescribed Account >pening application form,
• Certied copy of the "emorandum = Articles of Association
of the Company,
• Certicate of incorporation,
• Certicate of commencement of &usiness 9or ublic !imited
Companies only1,
• /xtract of the &oard resolution sanctioning the account
opening and signing authority,
• !ist of the :irector with address in specied from,
• hotograph of the signatories,
• Copy of valid Trade !icense,
• +ntroducerBs signature in the AFC opening form and at the
back of the photographs1 of Account holders1,
• !ist of names with Appointment letter and *pecimen
*ignature of the ersons authorized to operate the Account,
and
• The personal identity of all the directors or benecial
owners1 proprietor of the 9irm has to be established by any
of the documents as mentioned in +ndividual or 'oint
Customer category.
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 19/23
:istinction between conventional
commercial bank and +slamic
commercial bank
Characteristic Islamic
commercial
bank
Conventional
commercial
bank
Business
rame1ork
9unctions and
operating modes
are based on
*hariah and +slamic
banks must ensure
that all business
activities are
incompliance with
shariah
re4uirements.
9unctions and
operating modes
are based on
secular principles,
not religious laws
or guidelines.
Interest
charin
9inancing is not
interest iba1
oriented and
should be based on
risk6and6reward
sharing.
9inancing is
interest oriented,
and a xed or
variable interest
rate is charged for
the use of money
Interest on
deposits
Account holders do
not receiveinterestriba1 but
may share risk and
rewards of
investment made
by the +slamic bank
:epositors receives
interest and aguarantee of
principle payment
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 20/23
%isk sharin in
euity
fnancin
+slamic banks oer
e4uity nancing
with risk sharing
for a pro3ect or
venture. !osses areshared on the basis
of e4uity
participation.
isk sharing is not
generally oered
but is available
through venture
capital rms andinvestment banks,
which may also
participate in
management.
estrictions +slamic banks are
allowed to
participate only in
economic activities
that are *hariah
compliant.
Traditional banks
may nance any
lawful product or
service
Makat >ne of thefunctions of the
+slamic &anks is to
collect and
distribute zakat.
Traditional banksdo not collects and
pay any religious
tax
enalty on
default
+slamic banks are
not allowed to
charge penalties
for their
enrichment. They
may however allow
imposition of
default or late6
payment
penaltieson the
Traditional banks
normally charge
additional money
compound
interest1 in case of
late payment
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 21/23
grounds that these
penalties
discourage late
payments or
defaults, whichimpose
administrative
costs on bank for
processing and
collecting the
amount owed.
enalties may be
donated to a
charity or used tooset collection
cost.
Avoidance of
gharar
Transaction with
elements of
gambling or
speculation are
discouraged or
forbidden.
*peculative
investments are
allowed
Customer
elationship
The status of client
is that of partner
and investor
The status of a
client is one of
creditor and debtor
*hariah
supervisory
&oard
/ach +slamic bank
must have a
supervisory board
to ensure that all
its businessactivities are in line
with *hariahBs
re4uirement
Traditional banks
do not have such
re4uirements
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 22/23
Conclusion
The Standard Bank Ltd facilitate payments by means of credit
instruments like che4ues, drafts, telegraphic transfers, letters of
credits and other means of payment including credit and debitcards. Nithout these services domestic and international trade
could not have possibly progressed much beyond the old system
of barter. +n the words of Nalter leaf7 OThe banker is the universal
arbiter of the worldBs economyP.
7/25/2019 standard bank assignment..(Law).docx
http://slidepdf.com/reader/full/standard-bank-assignmentlawdocx 23/23