Bangladesh Economic Update, July 2014
The current issue of Bangladesh Economic Update analyses that the country’s banking sector is caught in trap, characterised by high rate of interest, excess liquidity and declining growth in disbursement of credit to private sector, intermediating lower investment, coupled with poor risk management, fraudulence, driven by captured governance and lax oversight, resulting in lower profitability to the shareholders. Besides this backdrop, questions are being raised concerning the far-sighted deregulation of the financial sector. Growth of credit in private sector registered at 11.46 percent in March 2014 over March2013 where it was12.72 percent in March 2013over March 2012 that indicates a 1.26 percent decrease witnessed at the same period in the previous year. Growth of credit in public sector has been observed a growth of 10.76 percent in March 2014 over March2013 compared to 8.71 percent in March 2013over March 2012, an increase of 2.05 percent.