News & Events


Roundtable Discussion on Development of Bond Market in Bangladesh held at BIBM


Press Release

Dhaka, 26 July, 2018:

A day long roundtable discussion was held at the Bangladesh Institute of Bank Management (BIBM) on 26 July 2018, in its auditorium. Mr.SK Sur Chowdhury Banking Reforms Adviser and Former Deputy Governor, Bangladesh Bank was present in the Roundtable Discussion as the chief guest. BIBM Director General Toufic Ahmad Choudhury Chaired the Program.

A paper titled “Development of Bond Market in Bangladesh?" was presented in the Roundtable Discussion by Dr. Prashanta Kumar Banerjee, Professor  & Director (R, D&C) of BIBM. Other members of the team are Mohammed Sohail Mustafa, CFA, Associate Professor, BIBM; Md. Ruhul Amin, Assistant Professor, BIBM; Reefat Zaman Shourov, Lecturer, BIBM; Sadnima Amir, Lecturer, BIBM and  Md. Habibur Rahman, Joint Director, Bangladesh Bank.

A good number of participant’s senior bank executives, academicians, media representatives, faculty members, officers of BIBM participated in the roundtable discussion.  Dr. Prashanta Kumar Banerjee, Professor & Director (R, D&C) of BIBM delivered welcome address.

BIBM Muzaffer Ahmed Chair professor & Former Dhaka University Economics department professor Barkat-e-Khuda, Former Managing Director of Pubali Bank Limited Helal Ahmed Chowdhury, BIBM Supernumerary Professor Yasin Ali spoke among others at the event.

 

SK Sur Chowdhury Banking Reforms Adviser and Former Deputy Governor of Bangladesh Bank said, developed bond market helps avoid excessive dependence on banks and facilitates to diversify corporate risks beyond the banking system. But Asian financial sectors including Bangladesh financial system are heavily bank dominated, as a result these are not well suited to finance long -term investments on a large scale as tenure of deposits of banks usually short term.

 

He said, Bangladesh economy continues its rapid growth, it faces an increasing need for diverse and sophisticated financial services and risk management financial products including financing for infrastructure. To meet this demand, capital market of Bangladesh still is not sufficiently broad and deep enough. Current and prospective issuers do not use the potential of the market for raising equity capital by issuing shares and borrowing funds by issuing corporate bonds.

BIBM Dr Muzaffer Ahmad Chair professor Barkat-e-Khuda said that the presence of bond market in the country was very limited compared with that of other countries. The government should take initiatives to change the situation as the country needs long-term investment to achieve its development goals, he said.


BIBM supernumerary professor Helal Ahmed Chowdhury, also former managing director of Pubali Bank, said that the country would have to overcome the dependency only on the banking sector for financing its investment needs. The bond market should get importance for financing for achieving sustainable development goals, he said.


BIBM supernumerary professor Yasin Ali said that it would not be possible to achieve the development goals depending only on the bank financing. He suggested a reduction in tax rate for expansion of the bond market to reduce pressure on the banking sector.

BIBM Director General Toufic Ahmad Choudhury emphasized assimilation of bond market, banking sector and capital market for improvement of the liquidity situation in the country.######

Written by Manager

Monday 30th July 2018