Investment of banks to facilitate and benefit the small and medium as well as minor entrepreneur: First Security Islami Bank Ltd., Biswa Road Branch

Abstract

Commercial banks play an important role in the financial system and the economy. As a key component of the financial system, banks allocate funds from savers to borrowers in an efficient manner. They provide specialized financial services, which reduce the cost of obtaining information about both savings and borrowing opportunities. These financial services help to make the overall economy more efficient. The economy of Bangladesh is going through a critical stage. The good part of our economy is that it is growing, which is typical for developing economies. Even though historically we see a steady borrowing scenario, the non-performing loans are also high. Domestic banks have been restructuring and rescheduling the loans for years. These non – performing loans also indicate that there might be lower chances for the new borrowers to borrow from the banks. So question arises whether the environment is friendly enough to fuel up the rate of investment growth. Historical and empirical data evident that, there are enough initiative from the side of the bank to facilitate business. Even though there has been a downfall in the overall investment in the recent past but it barely has anything to blame on the banks. However the scenario is only true for the Biswa Road Branch of First Security Islami Bank Limited. The overall scenario could be somewhat different for the whole banking sector of Banglades