Development of Financial Markets and Financial Stability in Bangladesh

Abstract

The main objective of this paper is to analyze the financial market development of Bangladesh during 2010-2015. Although having crisis triggered by capital market failure and ailing performance of SCBs, the progress of financial markets during last five to six years, on various counts are noteworthy. Even after taking into consideration of the less than required security measures, the development of payment and settlement system is tremendous and comparable to international standard. The growth of banking market, largest financial market of Bangladesh has been accompanied with well-designed financial stability measures. Finally, it was suggested that the regulatory authorities should continue the coordinated operation of financial watchdogs (BB, BSEC, MRA and IDRA) along with the measures to develop financial market capacity to ensure sustainable development of the financial sector in Bangladesh.