A Comparative Analysis on Foreign Remittances in the Banking Sector of Bangladesh

Abstract

Foreign remittance is the second highest source of foreign currency earning and plays a substantial role in the overall development of the economy in Bangladesh. Banks have a significant role to collect foreign currency, to maintain balance of payment and to enhance foreign currency reserves. The main objective of this study is a comparative analysis on foreign remittance in the banking sector of Bangladesh. This paper analyzed the comparative performances on remittances of bank wise remittances, year wise overseas remittances, and year wise overseas employments variables with particular emphasis on increasing more remittances support services by the banking sector during the years of 2010-2018. The study revealed that migrants were remitted $1554 million through banks in 2018. The figure was 15 percent higher than that of $1353 million in 2017. The results indicated that the overall performance of the banking sector, IBBL stood first among the all banks on foreign remittances and ABL was second highest and SBL was the third highest for inward remittances. Other Banks were performing moderately on remittance business. Though, Islami Bank achieved highest amount of remittances but study found that Agrani Bank maintained gradual development in remittances earning trends in Bangladesh. The findings also revealed that banks employed full potentials to maximize the contributions of remittances earningsfor the development of the migrants, increasing foreign currency reserves and contributing to the national economy. The study is expected to provide guidelines and recommendations to the banking sector for expanding dynamic support services for the migrants and targeting at achieving outstanding performances on remittances inflows, employment generations, and development of national economy.