Financial Sector Assessment : Bangladesh
The Bangladesh financial system, particularly banking and microfinance, has grown and developed since 2003 against the backdrop of 6 percent average Gross Domestic Product (GDP) growth. Banks' total assets and private credit ratios to GDP have...
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Language: | English en_US |
Published: |
Washington, DC
2013
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Online Access: | http://documents.worldbank.org/curated/en/2010/03/11968847/bangladesh-financial-sector-assessment http://hdl.handle.net/10986/15917 |
Summary: | The Bangladesh financial system,
particularly banking and microfinance, has grown and
developed since 2003 against the backdrop of 6 percent
average Gross Domestic Product (GDP) growth. Banks'
total assets and private credit ratios to GDP have each
increased by about one-third since the 2003 Financial Sector
Assessment Program (FSAP). Bank deposits, as a percentage of
GDP, are comparable to other South Asian countries. Private
domestic banks now hold a majority of bank assets; the
shares of state-owned commercial banks (SCBs) and
specialized banks (SBs) have declined correspondingly. Bank
branches, access to banking, and microfinance services have
expanded substantially. Nonbanking financial institutions
have also grown but remain small; banks s till account for
over 90 percent of financial institutions' assets.
Equity market listings and capitalization have grown
substantially; market capitalization was equivalent to about
14 percent of GDP in December 2008. A government bond market
is developing. Further sound financial development in the
various parts of the financial sector, and increased access,
will benefit from improvement in fundamentals: better credit
information and improved legal and judicial enforcement of
creditors' rights and collateral execution. |
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