capital market
Ensure investment-friendly environment
The capital market reflects the overall efficiency of a country’s economy. It creates a coordination among the public, the government, and capitalists. In Bangladesh, the condition of the capital market has not been good for a long time. Political instability and certain influential figures have repeatedly been blamed for this. During the tenure of the previous government, many discussions were held and various plans were undertaken to stabilise the capital market; however, none of these plans ultimately became effective.
Are borrowers or bankers more to blame for default loans?
According to the latest statistics from Bangladesh Bank, the total amount of default loans in the country's banking sector has reached 2,84,977 crore taka. This constitutes 16.93 per cent of the total loans disbursed by banks. In July, the amount of default loans was 2,11,391 crore taka. Therefore, in just three months, the amount of default loans in the banking sector has increased by 73,586 crore taka. During this period, the amount of default loans in state-owned banks has increased by 23,628 crore taka, while in private banks, the increase was 49,885 crore taka.
Find out reasons contributing to falling stock prices
In developed countries, entrepreneurs typically rely on the capital market to meet long-term capital needs. However, the capital market in our country is struggling to develop properly. For various reasons, both entrepreneurs and investors are not very enthusiastic about raising capital through the capital market. Instead, they tend to seek their desired capital from the banking sector. Yet, the capital market is the most suitable place for long-term funding.
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