A Study on SME Banking in Bangladesh

Abstract

There is a great supportive role of banking system in human society. It plays a vital role for the economic development of a country. The local banking system of Bangladesh is developing their services day by day by following the multinational banks. Standard Chartered Bank is one of multinational bank who is leader and follower of the other local banks. At the same time it brings different modem technology in our banking culture. In Bangladesh Standard Chartered Bank operate the banking operation over the Sixty five (65) years In that time it did lots of changes in this sector and it promoted many new ideas in this sector Standard Chartered Bank is trying to develop economic condition of the country. In the SME, SCB has five different products for their different customer choice. Today this bank provides loan facility TK 10 Lacs (BDT 1 million) to TK 4 crore (BDT 40 million) to that small and medium enterprise that has no easy access to banks or financial institutes. It is a huge amount of money that SCB providing for their customer in the SME loan. The success of SME will largely depends on the selection of a business and person behind the business. Standard Chartered Bank provides this facility like other local private banks to those whose business operation is minimum two years and environment friendly business. At the same time the business should be legally registered and must have valid trade license. The entrepreneur should be physically able, preferably between the ages 25 to 60. Entrepreneurs must have the necessary technical skills to run the business and acceptable social standing in the community.