Find Banking and Financial Services expertise in Bangladesh
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Banks
The financial sector in Bangladesh consists of the money and capital markets, insurance and pensions, and microfinance. The commercial banking system dominates the financial sector, with a limited role for non-bank financial institutions. The vast majority of players are nationalised commercial banks and local private commercial banks, with the rest being foreign banks and development finance institutions. There are four state-owned commercial banks, five state-owned specialized banks, 30 domestic private commercial banks, nine foreign commercial banks, and 29 non-bank financial institutions (2010). The largest bank is the state-owned Sonali Bank, whilst other noteworthy institutions include the Grameen Bank, the world-renowned micro-finance giant, and Pubali Bank, the largest private commercial bank. Multinational banks have some presence within the country with Standard Chartered Bank Bangladesh, Commercial Bank, Citibank and the State Bank of India being the primary examples. The banking industry in Bangladesh has experienced impressive development in volume and complexity, and has made significant improvements in fields relating to financial viability, profitability, innovation and competitiveness. Microfinance institutions saw rapid growth in Bangladesh and are implemented by various formal financial institutions, specialized government organizations, and non-government organisations.
Regulation of Financial Services
The sector is regulated by Bangladesh Bank, the country’s Central Bank, which has regulatory and supervisory jurisdiction over the entire banking subsector. The Securities and Exchange Commission (SEC) also plays a similar role for the stock exchanges and the merchant banks. In 2006 the Government of Bangladesh enacted the Microcredit Regulatory Authority Act to improve transparency and accountability in the activities of the country’s microfinance institutions. The Microcredit Regulatory Authority was established to implement the act and impose a thorough regulatory framework over the microcredit subsector. The World Economic Forum Global Competitiveness Report (2012-2013) ranked Bangladesh 93rd for soundness of banks.
Development of Financial Services
In the World Bank’s Ease of Doing Business Index (2011) Bangladesh was rated very highly in terms of protecting investors, finding itself in 24th place overall in the world (out of 183 countries) and the highest ranked South Asian country. In relation to getting credit it was placed 78th, putting it in an equivalent position to Sri Lanka. In the World Economic Forum’s Global Competitiveness Report (2012-13) Bangladesh was ranked 98th in the world (out of 144 countries) for its availability of financial services and 102nd for the affordability of financial services. Concerns that banks had not managed to incorporate large sections of the population, particularly underprivileged and rural segments, into basic banking services, have prompted new initiatives. The rapid extension of mobile phone ownership has provided a platform for the extension of banking services to both the unbanked and banked population. In relation to financing through the local equity market Bangladesh was placed in a moderate 42nd position, coming nine below the Germany and four above China. The WEF report placed Bangladesh 98th for ease of access to loans. The development of the financial sector is critical for achieving the government’s twin goals of economic growth and poverty reduction as the financial sector mobilises resources and allocates them to those investments that are capable of generating the highest return on capital.
| Banking and Financial Services organisations in Bangladesh | |
|---|---|
| AB Bank Ltd |
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| Agrani Bank |
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| Agrani Bank Ltd |
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| Bangladesh Bank |
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| Bangladesh Development Bank |
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| Basic Bank Ltd |
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| Dhaka Bank Ltd |
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| Eastern Bank Ltd |
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| IFIC Bank |
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| Janata Bank |
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| National Bank Ltd |
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| Rupali Bank Ltd |
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| Sonali Bank |
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