Standard Chartered Bank in Bangladesh

Ethics Of Standard Chartered Bank

Standard Chartered reputation is critical to being the world’s leading emerging markets bank. The preservation and enhancement of that reputation depends upon our businesses operating to the highest standards of ethical conduct.

We face a particular challenge to uphold consistent standards of conduct while at the same time respecting the culture and varying business customs of all the countries in which we operate.

The principles that govern the behaviour of our business and employees are reflected in a Group Code of Conduct. The Group Code of Conduct is a practical working document which guides employees through the many difficult conduct issues which confront them on a daily basis. Complying with each element of the Code will not always be easy but we recognize that we will be judged not just by what is set out in the Code but on how this is reflected in our day to day activities and the behaviour of all of you.

Standard Chartered Bank in Bangladesh

The Chartered Bank started operating in Bangladesh in 1948, opening a branch in Chittagong.  The branch was opened mainly to facilitate the post-war reestablishment and expansion of South and Southeast Asia.  The Chartered Bank opened another branch in Dhaka in 1966, where it is still headquartered. After the merger of the Chartered Bank with the Standard Bank in 1969, the Standard Chartered Bank took up a program of expansion.  It increasingly invested in people; technology and premises as its business grew in relation to the country’s economy.  In 1993, there was an organizational re-structuring, which led to a substantial expansion of the Bank’s business.

Performance and Growth

The change in strategy, performance and growth, adapted by Standard Chartered Bank is clearly evident in the following comparison between its performance in 1995 to that in 2002.

All the foreign banks combined hold 9% in deposits as compared to 29% by private commercial banks and 62% by nationalized commercial banks.

The comparative performance (holding market share) of Standard Chartered

From the above figure we see that of the 9% held by foreign banks in total deposits, SCB alone commands 40% of the deposits.

In terms of advances made, Standard Chartered Bank holds the leading position among the foreign banks with a market share of approximately 35%.

 Activities of Standard Chartered Bank

• Ø Corporate Banking Group

Standard Chartered Bank offers it local customer’s wide variety of financial services. All the accounts of corporate clients, which mainly comprises the top local and multinational companies operating in Bangladesh, are assigned to Relationship managers who maintain regular and close contact to cater top their needs.

The objective of this department is to maintain a thorough knowledge of the clients’ business and to develop positive relations with them. This is maintained through interactions to offer timely advice in a n increasingly competitive business environment. The expertise of the Institutional Banking and Treasury groups is also available whenever required. The unique Offshore Banking Unit (OBU) in Savar provides a full range of facilities to overseas investors. The Corporate Banking Group in Bangladesh has displayed a spirit of community involvement by working with NGOs to underwrite soft loans. Standard Chartered offers its corporate customers a wide variety of lending needs that are catered with skilled and responsive attention. They provide project finance and investment consultancy, syndicated loans, bonds and guarantees and local and international treasury products.

• Ø Trade finance

The trade finance of standard Chartered bank takes care of the commercial activity related issues, particularly those related to import and export finance services. Some of the services are:

• Trade finance facilities including counseling, confirming export L/C and issuing of import L/Cs, backed by its international branch and correspondent loan network.
• Bond and Guarantees
• Project finance opportunities for import substitution and export oriented projects
• Ø Treasury

The foreign exchange and money market operation of the Standard Chartered Bank in the world is extensive. Exotic currencies happen to be one of its special areas of strength. A 24-hr service is provided to customers in Bangladesh through the Bank’s network of dealing centers placed in the principal areas of the world. The Bank’s treasury specializes in offering solutions to those who wish to manage  interest rate and currency exposure s that result from trade, investment and financing activities of other dynamic economies of the region.

• Ø Institutional Banking Group

The IBG of Standard Chartered Bank offers a wide variety of products and services to banks and financial institutions. It has global links with leading bank institutions and agency arrangements through its network of offices in 40 countries. The Bank offers a full range of clearing, payment collection and import-export handling services. The bank offers foreign missions, voluntary organizations, consultants, airlines, shipping lines and their personnel, the following services:

Current accounts in both Taka and other major foreign currencies and Convertible Taka accounts.

• Ø Consumer Banking

Superior retail banking services comprising of a wide range of deposit and loan products are offered by Standard Chartered Bank to its individual customers. The consumer banking division constantly faces challenges and meets them by developing new products and services to fulfill the specific requirements of local TU. The Bank offers a 24-hour service in Bangladesh through its Money-link ATM Network and Phone-link Phone banking Services.

• Ø Custodial services: The Equator

Headquartered in Singapore, Standard Chartered equator fulfils the groups’ strategic commitment to the provision of custodial service in Asia. The equator’s customers are primarily foreign global custodians and broker/dealers requiring cross-border information as well as sub-custodian services. Standard Chartered Bank, Bangladesh is responsible for the planning in Bangladesh, but the overall management of the custody business is based in Equator’s international business strategy.

Support services

• Ø Operations

Operations are the part of the support division that helps to run the businesses of the bank in a smooth and controlled manner.  Since it helps mainly in processing the works of the business units, any mistakes made can be easily detected and on time.  Following are the main functions of the operations department:

Central operations deals with the closing and opening of accounts and other payment and account related processing of the Personal Banking division. Treasury operations help to deal with the processing works of the treasury division. Loan Administration Unit (LAU) deals with the processing of the Corporate Banking division.

Operations also have a department that deals with internal projects that arises from the need to deal with certain problems or to make certain changes.  Following are some examples of projects being dealt with presently:

Ø Finance, Administration and Risk Management

The support department performs the following activities:

±  Administration, audit and back office operation

±  Taking care of taxation and financial control of the Bank

±  Keeping track of overall credit operation

Ø InformationTechnologyCenter

This department is instrumental in the running of all the computerized operations of the bank.  They help in the implementation and generation of computerized reports.  Another duty of the department is to maintain communication with the rest of the world.

Ø Human Resource Department

This department manages recruitment, training and career progression plan.  Standard Chartered Bank highlights the importance of developing its people to create a culture of customer service, innovation, teamwork and professional excellence.

Ø Legal and compliance

In the UK, Standard Chartered Bank is regulated by the Bank of England, while in Bangladesh local banking laws regulate it and rules set by the Ministry of Finance and Bangladesh Bank. The local restriction involves a licence from Bangladesh Bank to operate banking business in Bangladesh.  Standard Chartered Bank complies by the rules and regulations seriously.  It also encourages its staff to conform to an internal culture of ethical behavior and sensitivities to the culture and religion of the country.  There is a mandatory training on Company Code of Conduct for all staff members.

Some of the key areas that the Legal & Compliance department has to take care of are: any kind of legal issues, to advise the CEO regarding all matters and the management on legal and regulatory issues, correspond regulatory compliance issues to MESA Regional Head of Compliance, and supervise internal control (e.g. internal audit).

Ø External Affairs

This department deals with advertising, public relations, promotions, partial marketing which involves disseminating new products and services to customers and above all ensuring service quality.

• Ø Credit

The credit department approves the loans of Corporate Banking division.  The approval is mainly based on the risk analysis of the corporate clients done by the Corporate Banking division.