L/C breakdown of Mutual Trust Bank Limited

Abstract

Letter of Credit breakdown means analysis on it. In this report, analysis on letter of credit of Mutual Trust Bank Limited has been described. How letter of credit work in this bank has also been described. The Mutual Trust Bank Limited is one of the popular banks which are working in Bangladesh for fourteen years. Some especial analyses have been done on letter of credit. These are SWOT, STP and PESTLE analysis on letter of credit. This is totally a new analysis on letter of credit, where L/C is shown as a service and a marketing analysis has done on it. Some journal entries of letter of credit have also been described in this report. These journal entries include some new accounting treatment. Letter of credit is actually a mode of export and import business. Any country is very much dependent on its international trade. So in international trade letter of credit is a very important document. But for bank letter of credit is treated as service. All the employees of foreign exchange department of Mutual Trust bank try their best to improve this service. As Bangladesh is a developing country the opportunities of export import is increasing over years. But the problems are complicated bureaucracy, political unrest, corruption, high inefficiency cost, absence of autonomous regulatory bodies, erratic power supply, lack of administrative coordination, inefficient customs processing, etc faced by the exporter and importer. So, letter of credit is affected indirectly by the above mentioned problem. Although there is various problem in international trade, letter of credit is doing great effort to expand the business globally.