· Threat of New Entrants: Threat of new entrants in bankingindustry is low. Because entering new bank in Bangladesh banking industry thistime needs government license and permeation to the Bangladesh bank with 400coror TK.
this is not essay open a new bank. Initially need skill manpower itis also not essay to the new bank.· Bargaining power of Buyers: Bargaining power of buyer is high.Because almost all Bank are provide same loan, deposit and other scheme. Manybank provide same service differently. Modern industry customer all the bankinginformation get easily and customer switching another bank. Example anotherbank provide loan low interest rate. · Bargaining power of supplier: The bargaining power of supplieris high.
Bank collect money for industry in customer deposits, loan. Thebargaining power of supplier high in way. First if depositor want more interestrate otherwise customer run other bank. Secondly multinational companies’ mainportion deposit for the bank fund. Some time they threat to the bank for moreinterest rate otherwise run another bank who provide more interest rate.· Threat of substitute products orservice: Threat ofsubstitute product is high. Itmeans another bank provide same service of Bank. So any how EXIM bank do notfull fill customer demand, that time customer run another bank.
Non-financial institutions are substitute ofbanking industry. Financial company provide loan is low interest rate andcollect deposited is high interest. It is threat for bank industry. · Rivalry among existing firms: Banking industry is more comparativecompetition is high. Exim bank is the shariah base islami bank. Bangladesh bankindustry have eight islami shariah base low following bank and someconventional bank.
Private commercial banks and every bank has its own target.There is always a competition to do better than other banks to be in a betterposition. They have more power for catchthe customer.