An analysis of banking practices and performance of IFIC Bank Ltd

Abstract

Bangladesh has a mixed banking system which includes nationalized, private and foreign commercial banks. In fact, commercial banks play the main role in the economic upliftment of any country through mobilization of savings and allocation of credit to profitable sectors. ( Teker et al, 2011 ) What we understand by the word ‘Bank’ is that all financial institutions deal with money. Also, there are various types of banks such as central banks, commercial banks, saving banks, investment banks, industrial banks. In fact, commercial banks are the fundamental contributor to our economy. These banks are for profit maximization that carry the deposits of people and organizations in checking and saving accounts. Next, they utilize these funds to provide loans. For this reason, individuals in general and government are dependent on the banks, specially commercial banks as the financial intermediary. Firstly, banks collect deposits at a very low and affordable price, also, issue loans and advance a bigger cost. Banking sector is enhancing its hand on various occasions every year. The banking processes and procedures are also becoming very faster and more convenient for all simultaneously. Banks are coming up with new and innovative products as the demands and expectations are rising day by day. However, it is important for everyone to have at least some general knowledge on the banking system and exactly how it works. Evaluation of Bank performance is very essential since it helps bankers to protect the banking operations against all the continuous risks ( Hays et al, 2009 ). Therefore, financial performance helps us to determine the consequences of an organization's rules and regulations in monetary terms.