Sources of financing of First Security Islami Bank Limited

Abstract

A commercial bank is a retail financial institution that helps community members open current, fixed, monthly and savings accounts and manage money market accounts. It also provides customers with deposit, withdrawal and transfer services. Bank customers can also carry out retail banking business through an automatic teller machine (ATM) or online. Beyond the everyday services, commercial banks also offer customers loans for various purposes. And the banks help business owners manage their accounts, including checking, savings and loans. The sources of funds in commercial banks are varied. The First Security Bank Limited registered under the Companies Act 1994 and Bank Companies Act 1991. This institution came into existence as an Investment Company in the name and style of First Security Bank Limited in September 22, 1999. The aim of the company was to activate resources from within and invest then in such way so as to develop country‟s industrial and trade sector and playing a catalyst role in the formation of capital market as well. The bank went for public issue on 20 July, 2008 and its shares are listed with Dhaka Stock Exchange (DSE) Ltd. and Chittagong Stock Exchange (CSE) Ltd. First Security Islami Bank Ltd‟s main sources of financing are basically the deposits, Shareholders capital, retained earnings, reserve funds and central bank financing. The bank cannot borrow fund from other bank because of its special type (Islami Bank). This report is the fulfillment of the requirement for the evaluation process of the internship program. The main purpose of the report is to have an overall idea about sources of bank's financing, analyzing tools and techniques used to evaluate sources of funds of First Security Islami Bank Limited. Basically, Banks need financing to fund operating constraints, invest in short- and long-run projects, acquire or merge with other organizations and develop new products. They also raise funds to meet financial market requirements or regulatory minimum balances.