P R E F A C E
In the name of Almighty Allah
This is my humble and maiden effort to make a brief presentation on what a commercial bank is, what qualities a professional banker should possess and what a commercial bank does. This book mainly focusses risk perspective of banking operation. It is mainly meant for practicing bankers, especially new entrants in banking profession. Others may also have a bird-eye-view on banking operation. I express my indebtness to bankers whose books, papers and presentations I have consulted. There might have been some short comings in this book. I would welcome and appreciate any suggestion for improvement of the book which shall be duly addressed in future edition, if any, Insallah.
I shall consider my maiden and humble effort amply rewarded and successful, if it comes to any benefit to the readers in anyway.
Md. Motior Rahman
Former Managing Director
Jamuna Bank Limited
Bank Bankers Banking

Table of Contents
Part-One
Banking - a dream profession for the young job seekers

Part-Two
I Bank - definition, origin of Bank Financial Sector of Bangladesh
II Commercial Banks after liberation of Bangladesh Types of Banks in Bangladesh
III Role of Commercial Banks in Socio-Economic Development of the Country Purpose of Central Bank's Stringent Regulations
IV. The organizational structure of commercial banks Towards excellence in Performance of Commercial Banks Sources and Application of Funds of Commercial Banks
V. Qualities of a sound and vibrant Commercial Bank
VI Islamic Banking

Part-Three
I Definition of Banker
Distinguished Qualities of a Banker
Skill Development
Professionalism
Leadership quality
Negotiation Skill
Communication skill
Ethics in Banking
Motivational skill
Customers Service
II Knowledge related to Laws, Rules and Regulations
III Responsibilities of Head of Branches
IV Responsibilities of Senior Level Executives of Banks W Human Resources Management

Part-Four
I General Banking
Account Opening
II Fixed Deposit
Current Account
Savings Account
Special Notice Deposit Account
Other Scheme Deposit Account
III The Negotiable Instrument Act, 1881
Crossing
Endorsement IV Cheque
Payment of Cheque
Statutory protection of paying Banker
Statutory protection of collecting Banker
Types of cheques W Inland remittance of Funds
VI Treasury operation of Banks
VIIIT operation of Banks VIII Cash Management

Part-Five
I Importance of credit operation of Banks
Forms of credit
The Principles of Sound Lending
II Judicious selection of borrowers Sources of credit information
III Some Tips for credit handling
IV Appraisal of Credit Proposals V Mode of Advances
VI Loan decision Flow Chart
VII Securities Attributes of good security

Continuation of Part-Five
VIII Creation of charge over securities Methods of creation of charge
IX Documentation
X Bank Guarantee
XI Credit Flow Chart of Banks
XII Credit Risk Mode-wise instances of credit risk identification
XIII Review, Follow-up, Supervision and Monitoring of credits
XIV Recovery of loans

Part-Six
I Foreign Exchange meaning
Exchange control in Bangladesh
II Foreign Exchange Market
III Exchange Rate
IV Balance of Trade and Balance of Payment
V Foreign Remittances
VI Foreign Currency Account
VII INCOTERMS (International Commercial Terms)
VIII Methods of Payment International Trade
IX Documents used in Foreign Trade
X Mechanism of Letter of Credit
XI Types of Letter of Credit Back to Back L/C
XII Scrutiny of Documents
XIII Lodgement of Import documents Retirement of Import documents
XIV Correspondent Banking relationship
XV Off-shore Banking Unit (OBU)
XVI UCPDC - 600
XVII Export Incentives
XVIII Export Processing Zone (EPZ)
Continuation of Part-Six
XIX Asian Clearing Union (ACU) XX Export Procedures

XXI International Financial Institutions
International Monetary Fund (IMF)
World Bank (IBRD)
International Finance Corporation (IFC)
International Development Association (IDA)
Asian Development Bank (ADB)
The Islamic Development Bank (IDB)
XXIII Some Terminologies used in Foreign Exchange

Part-Seven
I Malpractices in Banking
Instances of Malpractices in General Banking
Instances of Malpractices in Credit Operation
Instances of Malpractices in Foreign Exchange peration