International Finance Investment and Commerce Bank Limited (IFIC Bank) is banking company incorporated in the Peoples Republic

of Bangladesh with limited liability. It was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions aboard. In 1983 when the Government allowed banks in the private sector, IFIC was converted into a full fledged commercial bank. The Government of the Peoples Republic of Bangladesh now holds 32.75% of the share capital of the Bank. Directors and Sponsors having vast experience in the field of trade and commerce own 8.62% of the share capital and the rest is held by the general public.

Financial instrument of IFIC bank: ENTERPRISE FINANCING by IFIC Bank

IFIC Bank has the following important products for Small Enterprise Financing (SEF): Easy Commercial loan Retailers loan Transport Loan Commercial house building loan Possession right loan Contractors loan Letter of guarantee Working capital loan Letter of credit Loan against imported merchandise (LIM) Loan against trust receipt(LTR) Bidders loan Project loan

Financil instruments:

Capital Market
IFIC Bank Limited is devoted to capital Market of the country and offers world standard brokerage services for individual and institutional investors. The Bank is responsible for origination of sales, buy and trading of securities of Capital markets. It aims to provide relevant support to its customer t with sophisticated and innovative financial solutions and delivering the highest quality of services. It has a seat in Dhaka Stock Exchange Limited.

IFIC Bank Treasury Division

The Treasury Division of IFIC Bank is engaged with Cash Management, Liquidity Planning and Liquidity Protection. It is also conscious to protect all the banks Assets and Profits against loss due to domestic as well as global financial realities, particularly Interest and

Exchange Rate fluctuations. The Treasury Department is also regarded as a Profit Center, which generates income by trading instruments in the Financial Market. The Treasury is constituted with well setup Front Office, Mid Office and Back Office. To manage treasury unit as profit centre, along with guidance from regulatory authorities, the bank equipped itself with clear policies, fit organization structure, deployment of trained staff, modern infrastructural facilities and technological initiatives. MAJOR FUNCTIONS OF TREASURY:

Management of Statutory Requirement Investment Trading of F Ex. & Money Market Instruments Asset Liability Management Risk Management

IFIC Bank has a dedicated Treasury team which is capable of providing all treasury solutions through wide range of Treasury products. IFIC Treasury has four different desks, which are specialized in their own area to provide best services with respect to pricing, best possible solution for customer requirement and market information. The different Treasury Desks are as follows: Foreign Exchange Desk IFIC Forex Desk is one of the leading market maker in spot, swaps, and forward transactions in inter-bank market. The Bank has good sources of Foreign Currency through its own export customers, Non-residence Remittances and local & multinational corporate houses remittances/exports. The Bank is also well equipped to price world major currency spot & forward prices. The Treasury is connected to the International Market through on-line Dealing Platforms of different international banks to quote very competitive prices on world major currency spot & forwards. Money Market Desk Money market dealers arrange short and medium term funds at most economical terms which are required by the bank aside from customer deposit mobilization efforts. Money market desk ensures that the bank remains sufficiently liquid, meeting all its financial commitments and obligations to its customers besides meeting the SLR & CRR requirement at minimum risk and cost to the bank. In stress liquidity condition the desk always manages sufficient fund to provide business needs. Investment Desk Investment desk in Treasury Front Office operates within the policy frame approved by the Board of Directors of the Bank. Fund invested in different securities both for maintenance of SLR & income generating activities. The philosophy is to manage and maximize income within certain parameters and limits. It also includes use of effective duration, rate shock analysis, as well as total return to analyze and manage the investment portfolio and to determine the effect of movements on the yield and value of the banks portfolio. Investment desk operates within available investment opportunities in the country and abroad. The desk keeps an eye on the market movement to reap on every opportunity and to get the best of every penny invested and maximize profit as well as shareholders value.

Asset Liability Management Desk Asset Liability Management is one of the major functions of IFIC Bank Treasury. IFIC Bank has a highly efficient ALM Desk, which is an independent unit within the Treasury Department. Objective of the desk is to ensure efficient allocation of fund within an acceptable, measurable and defined risk structure. The desk monitor & analyzes various cash flows, cash positions, balance sheet gaps, daily P&L, economic trends, investment options, arbitrage opportunities, future business growth and place the facts & findings before the ALCO. Regular ALCO meeting is conducted once in month but incase of urgent situation special meeting is arranged. The desk proposes balance sheet strategy to the management. Treasury Products IFIC Bank Treasury deals with the following Money Market, Capital Market and Forex Market Instruments for managing fund, statutory requirement, liquidity and investment. Money Market Overnight Call Term Placement Repurchase Agreement Reverse Repo Government Securities Treasury Bill Treasury Bond Capital Market Share Bond Foreign Exchange Spot Forward Swap Term Placement