Basic Functions of

UNITED
COMMERCIAL BANK
UCB Bank Limited:
Driving Economic Growth Through Foreign Exchange Activities

Banking's Intermediary Role:

Crucial for resource allocation and economic momentum.
Essential for a nation's money market and economic development

UCB Bank's Focus:

Aims to contribute to the bank's total profit.

Foreign Trade and Economic Development:

Foreign trade vital for economic growth.
Balancing domestic production and foreign trade is crucial.

UCB's Role in Foreign Trade:

Commercial and non-conventional bank actively engages in Bangladesh's foreign trade.
Strengthens its position through an international network.

Revenue Sources for Banks:

Mainly from investments and credit facilities.
Funded and non-funded credit, with a focus on Letter of Credit (LC) as a primary income
source.
Remittance is a significant part of foreign exchange activities.
UCB Bank Limited:
Driving Economic Growth Through Foreign Exchange Activities

Introduction to United Commercial Bank (UCB):

Established in mid-1983, UCB is a prominent first-generation bank in Bangladesh.
A vast network of 224 branches, marking its position in private sector banking.

Diverse Banking Segments:

UCB operates in various banking segments, including Retail Banking, SME Banking, Corporate Banking, Off-shore Banking, and Remittance.
Provides deposit and loan products, export and import loans, contributing to the country's foreign exchange earnings.

Retail Banking Success:

Success in Retail Banking with various deposit and loan products.
UCB Cards, introduced in 2006, became a local market leader with around 40,000 cardholders.

Remittance Services:
Offers both incoming and outgoing remittance services.
Facilitates expatriates in sending money through proper channels.

SME Sector Commitment:

Actively promotes the SME sector with assessments, monitoring, and business financing.
Expertise in financial analysis, financing large projects, including RMG and infrastructure development.
UCB Bank Limited:
Driving Economic Growth Through Foreign Exchange Activities (Continued)

Corporate Banking Expertise:

Corporate banking services range from issuing loans to complex matters like managing foreign
exchange rates and financing packages.
Specializes in financial analysis for large projects, including RMG and infrastructure development.

Economic Engagement:
Firm commitment to playing a leading role in the country's economic activities.
Invests in network expansion and adopts new technology for a competitive advantage.
UCB Bank's Objectives for Growth and Customer Satisfaction
Core objective is to achieve maximum profit by ensuring customer satisfaction.
Aim to be market leaders in providing high-quality banking products and service
Technological Excellence in Customer Service
Contribute to the industrial development of the country by supporting new and educated entrepreneurs.
Credit Facilities for Small and Medium Enterprises in urban and suburban areas accessible through branches.
Reducing Dependence on Moneylenders
Empowering Small and Medium Enterprises
Promoting Saving Attitude
Encouraging Small Projects for Employment Creation
Ensure a high return on investment for stakeholders
Striving for Profit and Sound Growth
Playing a Significant Role in Economic Development
Actively work to protect against money laundering
Nature of Business of UCB Bank
Deposit banking
Loan & advance facilities
Export and import facilities
International remittance facilities
Foreign exchange transactions

UCB Bank's Purpose: Empowering Export Activities

Effective Communication in Export Activities
Enhanced Convenience and Benefits for Exporters
Expand workshops for exports and imports, initiate special service delivery, and implement training programs for
officials.
Introduce new credit products under the BMME loan for export projects, supporting the import of machinery,
factory expansion, and extending outgoing parties.
Competitive Positioning and Facilities
Management Hierarchy
Major Sectors of Foreign Exchange Division
Remittance Division
Import Division
Export Division
Trading Currency

Understanding Letter of Credit (LC) in International Trade

An arrangement where the issuing bank, acting on the importer's instructions, undertakes payment,
acceptance of drafts, or authorizes another bank to do so, against stipulated documents, provided
terms and conditions are met.

Types of Letters of Credit Parties of Letter of Credit:

Document credit Issuing bank
Stand-by letter of credit Advising bank
Revocable credit Credit applicant
Irrevocable credit Beneficiary
Counter credit Nominated bank
Letter of credit Negotiating bank
Back-to-back credit
Remittance Services: Facilitating Global Transactions
As an authorized dealer in foreign exchange, the bank's remittance department plays a crucial role in providing
foreign exchange services to depositors.

Outward and Inward Remittance, Facilitates the movement of foreign exchange from one country to another

Currency Conversion

The bank quotes rates for buying and selling foreign currencies, treating them as commodities in sales and
purchases

The cost (conversion value) is paid by the buyer in the home currency, the legal tender

UCB Bank's Purpose: Empowering Export Activities

Effective Communication in Export Activities
Enhanced Convenience and Benefits for Exporters
Expand workshops for exports and imports, initiate special service delivery, and implement training programs for
officials.
Introduce new credit products under the BMME loan for export projects, supporting the import of machinery,
factory expansion, and extending outgoing parties.
Competitive Positioning and Facilities
Instruments of Foreign Remittances
Cash for: Dollar, Pound, France Fr. Riyal or any other currency.
T.C.: Travelers Cheque.
F.D.D: Foreign Demand Draft.
T.T: Telegraphic Transfer, Cable transfer or swift transfer.
M.T: Mail Transfer.
I.M.O: International Money Order. Cheque: By any person & institution.
P.O: Payment Order.

Instruments of Foreign Remittances

Cash for: Dollar, Pound, France Fr. Riyal or any other currency.
T.C.: Travelers Cheque.
F.D.D: Foreign Demand Draft.
T.T: Telegraphic Transfer, Cable transfer or swift transfer.
M.T: Mail Transfer.
I.M.O: International Money Order. Cheque: By any person & institution.
P.O: Payment Order.
Foreign Currency Trading: A Closer Look
Dealing Room Operations
Occurs in the dealing room, a space dedicated to online buying and selling of foreign currency.
Excludes money market operations.

Types of Transactions:
Local Currency to Foreign Currency
Foreign Currency to Local Currency
Foreign Currency to Foreign Currency (Cross Currency)

Formalities for opening foreign currency (FC) Account:

1. Bangladesh national residing abroad.
2. Foreign nationals residing abroad/ in Bangladesh and also foreign firms
3. Registered abroad and operating in Bangladesh and abstract foreign missions and their expatriate
employees.
4. Resident of Bangladesh nationals working with the foreign / international organization operating in
Bangladesh provided their salary in paid in foreign currency.
The structure, rules, and general financial environment of the banking systems in Bangladesh and the USA differ
significantly. Here are a few significant variations:

The banking systems in Bangladesh and the USA exhibit significant differences in structure, rules,
and overall financial environments.

Dimensions and Intricacy:

United States:
Among the largest and most intricate banking systems globally.
Comprises credit unions, national and local banks, and various financial organizations.
Bangladesh:
Relatively smaller and less complex due to a smaller GDP

Bank Types and Numbers:

United States:
Diverse landscape with large international banks, regional banks, community banks, and credit unions.
Bangladesh:
Banking industry includes foreign banks, domestic banks, and specialty banks like development or agricultural banks.

Regulatory Structure:
United States:
Sophisticated regulatory system with entities like the Federal Reserve, Office of the Comptroller of the Currency, and Federal
Deposit Insurance Corporation.
Bangladesh:
Bangladesh Bank, the central bank, manages and regulates all financial institutions, overseeing the banking sector.
The structure, rules, and general financial environment of the banking systems in Bangladesh and the USA differ
significantly.
(Continiued)

Innovation and Technology:

United States:
Emphasis on modern financial technologies, including digital services like online banking and mobile payments.
Bangladesh:
Adopting digital banking, though not as extensively as the USA.

Inclusion of Finances:
United States:
Well-established banking system, but some areas still lack or have limited access to banking services.
Comparison: Private Banks vs. Bangladesh Bank
The banking systems in Bangladesh and the USA exhibit significant differences in structure, rules, and overall
financial environments.

Ownership and Structure::

Private Commercial Banks (PCBs):
Majorly owned by individuals and private entities.
43 private commercial banks in Bangladesh.
Bangladesh Bank (BB):
Central bank responsible for maintaining financial stability.
Oversees the monetary policy and foreign exchange reserves.

Function and Purpose:

Private Commercial Banks:
Primarily engage in commercial banking activities, including lending and deposit services.
Bangladesh Bank:
Manages the foreign exchange reserve of the country.
Invests funds in Treasury bills, repos, government papers, short-term deposits, and bonds to minimize risk.

Foreign Exchange Management::

Private Commercial Banks:
Involved in foreign exchange transactions for their clients.
Bangladesh Bank:
Maintains foreign exchange reserves to minimize risks from currency fluctuation and irregular global interest rate movements.
Comparison: Private Banks vs. Bangladesh Bank (Continued)

investment Functions:
Private Commercial Banks:
Invest in various financial instruments based on their business strategy.
Bangladesh Bank:
Manages investments in Treasury bills, repos, government papers, deposits, and bonds
guided by an investment policy.

Investment Policy:
Private Commercial Banks:
Develop their investment policies based on internal considerations and market
dynamics.
Bangladesh Bank:
Guided by an investment policy set by the BB's Investment Committee to ensure
optimum returns with minimum market risk.
Recommendations for UCB Bank Limited

1. Boost Remittance Profit

2. Adapt to Export Earnings
3. Diversify Revenue Sources
4. Ensure Consistent Growth Rates
5. Build Global Banking Relationships
Conclusion

1. UCB Bank is a vital contributor to Bangladesh's socio-economic development.

2. Actively engages in essential activities fostering trade, industry, and employment, impacting the
country's GDP positively.
3. Demonstrates robust performance in general banking, loans, advances, and foreign currency
operations.
4. UCB's effective foreign exchange business plays a crucial role in the overall growth and progress of the
national economy
5. Utilizes a broad network of branches and communication banks globally, contributing to international
trade and economic development.
Everest
THANK YOU
Cantu