Bangladesh - Non-Lending Technical Assistance on Capital Markets
The Bangladesh stock market experienced significant volatility in late 2010 and early 2011 which took stock values high above fundamentals and threatened the stability of the financial system. This note takes a systematic look at the capital market...
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| Format: | Commodities Study |
| Language: | English en_US |
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Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2011/06/16238773/bangladesh-non-lending-technical-assistance-capital-markets http://hdl.handle.net/10986/12365 |
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okr-10986-12365 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ACCOUNTING STANDARDS ASSET CLASSIFICATION AUCTIONS BANKING INSTITUTIONS BANKING LAW BANKING REGULATION BANKING SECTOR BANKING SECTOR ASSETS BENCHMARK BONDS BOND BOND ISSUANCE BOND ISSUES BOND MARKET BOND MARKETS BONDS BOOK ENTRY BRANCH NETWORKS BROKERAGE BROKERAGES BROKERS CAPITAL MARKET CAPITAL MARKET ACTIVITIES CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL MARKETS REGULATORS CAPTIVE INVESTORS CDS CENTRAL BANK CENTRAL DEPOSITORY CENTRAL DEPOSITORY SYSTEM CHECK CLEARING COMMERCIAL BANK COMMERCIAL BANK BRANCHES COMMERCIAL BANKING COMMERCIAL BANKS COMMERCIAL PAPER COMMERCIAL PAPER MARKET COMMON LAW CONFLICT OF INTEREST CONSUMER PRICE INDEX CORPORATE BOND CORPORATE BOND MARKET CORPORATE BOND MARKETS CORPORATE BONDS CORPORATE BORROWERS CORPORATE DEBT CORPORATE GOVERNANCE CREDIT RATING CREDIT RATING AGENCIES CURRENT ACCOUNT SURPLUS DEBENTURE DEBENTURE HOLDERS DEBENTURES DEBT INSTRUMENTS DEBT OUTSTANDING DEBT SECURITIES MARKETS DEMAND FOR GOVERNMENT SECURITIES DEPOSIT DEPOSITS DEVELOPMENT BANK ENFORCEMENT POWERS EQUITIES EQUITY MARKET EXCESS LIQUIDITY EXCHANGE COMMISSION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL STABILITY FINANCIAL SYSTEM FISCAL DEFICIT FOREIGN BANKS FOREIGN CURRENCY FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN INVESTORS GOVERNMENT BONDS GOVERNMENT BORROWING GOVERNMENT DEBT GOVERNMENT DEBT MARKET GOVERNMENT DEBT SECURITIES GOVERNMENT FUNDING GOVERNMENT SECURITIES HOLDINGS HUMAN DEVELOPMENT INCOME RECOGNITION INFLATION INFLATIONARY PRESSURES INFRASTRUCTURE BONDS INSIDER TRADING INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE CORPORATION INSURANCE INDUSTRY INSURANCE PENETRATION INTEREST RATE INTEREST RATE RISK INTERNATIONAL STANDARDS INVESTING INVESTMENT CORPORATION INVESTMENT FUNDS INVESTMENT INSTRUMENT INVESTMENT INSTRUMENTS INVESTMENT POLICY INVESTMENT RESTRICTIONS INVESTOR BASE INVESTOR DEMAND INVESTORS IN GOVERNMENT SECURITIES ISLAMIC BANKS ISLAMIC BOND LEGAL AUTHORITY LEGAL FRAMEWORK LENDERS LIFE INSURANCE LIFE INSURANCE COMPANIES LIQUIDITY LIQUIDITY MANAGEMENT LIQUIDITY POSITION LOAN LONG-TERM DEBT MALFEASANCE MARKET CAPITALIZATION MARKET DISTORTIONS MARKET INSTABILITY MARKET REGULATORS MATURITIES MATURITY MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MINIMUM CAPITAL REQUIREMENTS MONETARY POLICY MONEY MARKET MUTUAL FUND MUTUAL FUND INDUSTRY MUTUAL FUNDS NATIONAL INVESTMENT NATIONAL SAVINGS NON-PERFORMING LOANS OUTSTANDING AMOUNTS PENSION PENSION FUND PENSIONS POST OFFICE PRIMARY MARKET PRIMARY MARKETS PRIVATE BANKS PRIVATE BOND PRIVATE BONDS PRIVATE DEBT PRIVATE DEBT MARKETS PRIVATE INVESTMENT PRIVATE PLACEMENTS PRODUCTIVE INVESTMENT PRUDENTIAL REGULATIONS PUBLIC INVESTMENT REGISTRATION FEE REGISTRATION FEES REGULATORY CAPACITY REGULATORY FRAMEWORK REGULATORY STRUCTURE REMITTANCE REMITTANCES REPO REPO FACILITY REPO MARKET REPOS RESERVE RESERVE REQUIREMENTS RETAIL INVESTORS RETURNS REVERSE REPO TRANSACTIONS RISK MANAGEMENT SAVINGS CERTIFICATES SECONDARY MARKET SECONDARY MARKET TRADING SECONDARY MARKETS SECURITIES SECURITIES MARKETS SECURITIES REGULATION SECURITIES TRANSACTIONS SETTLEMENT SETTLEMENT SYSTEMS SHAREHOLDER SHAREHOLDERS SMALL INVESTORS SOVEREIGN GUARANTEE STAMP DUTIES STATUTORY LIQUIDITY STOCK EXCHANGE STOCK EXCHANGES STOCK MARKET STOCK MARKET PRICES STOCK MARKET VOLATILITY STOCKS SURPLUS LIQUIDITY T-BILL T-BILLS T-BONDS TAX TRADING SYSTEM TRANSACTION TRANSFER OF SECURITIES TRANSPARENCY TREASURY TREASURY BILLS TREASURY BONDS TRUSTEE TRUSTEES TURNOVER UNDERWRITERS YIELD CURVE |
| spellingShingle |
ACCOUNTING ACCOUNTING STANDARDS ASSET CLASSIFICATION AUCTIONS BANKING INSTITUTIONS BANKING LAW BANKING REGULATION BANKING SECTOR BANKING SECTOR ASSETS BENCHMARK BONDS BOND BOND ISSUANCE BOND ISSUES BOND MARKET BOND MARKETS BONDS BOOK ENTRY BRANCH NETWORKS BROKERAGE BROKERAGES BROKERS CAPITAL MARKET CAPITAL MARKET ACTIVITIES CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL MARKETS REGULATORS CAPTIVE INVESTORS CDS CENTRAL BANK CENTRAL DEPOSITORY CENTRAL DEPOSITORY SYSTEM CHECK CLEARING COMMERCIAL BANK COMMERCIAL BANK BRANCHES COMMERCIAL BANKING COMMERCIAL BANKS COMMERCIAL PAPER COMMERCIAL PAPER MARKET COMMON LAW CONFLICT OF INTEREST CONSUMER PRICE INDEX CORPORATE BOND CORPORATE BOND MARKET CORPORATE BOND MARKETS CORPORATE BONDS CORPORATE BORROWERS CORPORATE DEBT CORPORATE GOVERNANCE CREDIT RATING CREDIT RATING AGENCIES CURRENT ACCOUNT SURPLUS DEBENTURE DEBENTURE HOLDERS DEBENTURES DEBT INSTRUMENTS DEBT OUTSTANDING DEBT SECURITIES MARKETS DEMAND FOR GOVERNMENT SECURITIES DEPOSIT DEPOSITS DEVELOPMENT BANK ENFORCEMENT POWERS EQUITIES EQUITY MARKET EXCESS LIQUIDITY EXCHANGE COMMISSION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL STABILITY FINANCIAL SYSTEM FISCAL DEFICIT FOREIGN BANKS FOREIGN CURRENCY FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN INVESTORS GOVERNMENT BONDS GOVERNMENT BORROWING GOVERNMENT DEBT GOVERNMENT DEBT MARKET GOVERNMENT DEBT SECURITIES GOVERNMENT FUNDING GOVERNMENT SECURITIES HOLDINGS HUMAN DEVELOPMENT INCOME RECOGNITION INFLATION INFLATIONARY PRESSURES INFRASTRUCTURE BONDS INSIDER TRADING INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE CORPORATION INSURANCE INDUSTRY INSURANCE PENETRATION INTEREST RATE INTEREST RATE RISK INTERNATIONAL STANDARDS INVESTING INVESTMENT CORPORATION INVESTMENT FUNDS INVESTMENT INSTRUMENT INVESTMENT INSTRUMENTS INVESTMENT POLICY INVESTMENT RESTRICTIONS INVESTOR BASE INVESTOR DEMAND INVESTORS IN GOVERNMENT SECURITIES ISLAMIC BANKS ISLAMIC BOND LEGAL AUTHORITY LEGAL FRAMEWORK LENDERS LIFE INSURANCE LIFE INSURANCE COMPANIES LIQUIDITY LIQUIDITY MANAGEMENT LIQUIDITY POSITION LOAN LONG-TERM DEBT MALFEASANCE MARKET CAPITALIZATION MARKET DISTORTIONS MARKET INSTABILITY MARKET REGULATORS MATURITIES MATURITY MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MINIMUM CAPITAL REQUIREMENTS MONETARY POLICY MONEY MARKET MUTUAL FUND MUTUAL FUND INDUSTRY MUTUAL FUNDS NATIONAL INVESTMENT NATIONAL SAVINGS NON-PERFORMING LOANS OUTSTANDING AMOUNTS PENSION PENSION FUND PENSIONS POST OFFICE PRIMARY MARKET PRIMARY MARKETS PRIVATE BANKS PRIVATE BOND PRIVATE BONDS PRIVATE DEBT PRIVATE DEBT MARKETS PRIVATE INVESTMENT PRIVATE PLACEMENTS PRODUCTIVE INVESTMENT PRUDENTIAL REGULATIONS PUBLIC INVESTMENT REGISTRATION FEE REGISTRATION FEES REGULATORY CAPACITY REGULATORY FRAMEWORK REGULATORY STRUCTURE REMITTANCE REMITTANCES REPO REPO FACILITY REPO MARKET REPOS RESERVE RESERVE REQUIREMENTS RETAIL INVESTORS RETURNS REVERSE REPO TRANSACTIONS RISK MANAGEMENT SAVINGS CERTIFICATES SECONDARY MARKET SECONDARY MARKET TRADING SECONDARY MARKETS SECURITIES SECURITIES MARKETS SECURITIES REGULATION SECURITIES TRANSACTIONS SETTLEMENT SETTLEMENT SYSTEMS SHAREHOLDER SHAREHOLDERS SMALL INVESTORS SOVEREIGN GUARANTEE STAMP DUTIES STATUTORY LIQUIDITY STOCK EXCHANGE STOCK EXCHANGES STOCK MARKET STOCK MARKET PRICES STOCK MARKET VOLATILITY STOCKS SURPLUS LIQUIDITY T-BILL T-BILLS T-BONDS TAX TRADING SYSTEM TRANSACTION TRANSFER OF SECURITIES TRANSPARENCY TREASURY TREASURY BILLS TREASURY BONDS TRUSTEE TRUSTEES TURNOVER UNDERWRITERS YIELD CURVE World Bank Bangladesh - Non-Lending Technical Assistance on Capital Markets |
| geographic_facet |
South Asia Bangladesh |
| description |
The Bangladesh stock market experienced
significant volatility in late 2010 and early 2011 which
took stock values high above fundamentals and threatened the
stability of the financial system. This note takes a
systematic look at the capital markets underpinnings in
Bangladesh, including the regulatory framework, the
rule-making bodies and enforcement issues. It also addresses
systemic weaknesses responsible for market instability which
was observed at the end of 2010 and early 2011. The note
analyses the outlines specific areas of potential
vulnerabilities of securities markets, as assessed against
appropriate practice guidelines for stability,
sustainability, transparency, and enforcement. A plan of
action going forward is also suggested. This note draws on a
considerable amount of prior analytical work. Bangladesh
capital markets remain ineffective. The government debt
securities markets are illiquid preventing the Bangladesh
financial system from relying on a market-based yield curve.
Bangladesh has yet to develop an active money market.
Trading of treasury bills in the secondary market is limited
because these instruments, along with treasury bonds, make
up the statutory liquidity reserve and are therefore
generally held until maturity by commercial banks and other
financial institutions. Trading is also thin in repurchase
agreements, for two main reasons. First, commercial banks
have a weak treasury function, and most do not actively
manage liquidity. Second, there is no standard master
repurchase agreement, a gap that should be addressed to
support orderly development of the repo market. |
| format |
Economic & Sector Work :: Commodities Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Bangladesh - Non-Lending Technical Assistance on Capital Markets |
| title_short |
Bangladesh - Non-Lending Technical Assistance on Capital Markets |
| title_full |
Bangladesh - Non-Lending Technical Assistance on Capital Markets |
| title_fullStr |
Bangladesh - Non-Lending Technical Assistance on Capital Markets |
| title_full_unstemmed |
Bangladesh - Non-Lending Technical Assistance on Capital Markets |
| title_sort |
bangladesh - non-lending technical assistance on capital markets |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2011/06/16238773/bangladesh-non-lending-technical-assistance-capital-markets http://hdl.handle.net/10986/12365 |
| _version_ |
1764419642613301248 |
| spelling |
okr-10986-123652021-04-23T14:03:00Z Bangladesh - Non-Lending Technical Assistance on Capital Markets World Bank ACCOUNTING ACCOUNTING STANDARDS ASSET CLASSIFICATION AUCTIONS BANKING INSTITUTIONS BANKING LAW BANKING REGULATION BANKING SECTOR BANKING SECTOR ASSETS BENCHMARK BONDS BOND BOND ISSUANCE BOND ISSUES BOND MARKET BOND MARKETS BONDS BOOK ENTRY BRANCH NETWORKS BROKERAGE BROKERAGES BROKERS CAPITAL MARKET CAPITAL MARKET ACTIVITIES CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL MARKETS REGULATORS CAPTIVE INVESTORS CDS CENTRAL BANK CENTRAL DEPOSITORY CENTRAL DEPOSITORY SYSTEM CHECK CLEARING COMMERCIAL BANK COMMERCIAL BANK BRANCHES COMMERCIAL BANKING COMMERCIAL BANKS COMMERCIAL PAPER COMMERCIAL PAPER MARKET COMMON LAW CONFLICT OF INTEREST CONSUMER PRICE INDEX CORPORATE BOND CORPORATE BOND MARKET CORPORATE BOND MARKETS CORPORATE BONDS CORPORATE BORROWERS CORPORATE DEBT CORPORATE GOVERNANCE CREDIT RATING CREDIT RATING AGENCIES CURRENT ACCOUNT SURPLUS DEBENTURE DEBENTURE HOLDERS DEBENTURES DEBT INSTRUMENTS DEBT OUTSTANDING DEBT SECURITIES MARKETS DEMAND FOR GOVERNMENT SECURITIES DEPOSIT DEPOSITS DEVELOPMENT BANK ENFORCEMENT POWERS EQUITIES EQUITY MARKET EXCESS LIQUIDITY EXCHANGE COMMISSION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL STABILITY FINANCIAL SYSTEM FISCAL DEFICIT FOREIGN BANKS FOREIGN CURRENCY FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN INVESTORS GOVERNMENT BONDS GOVERNMENT BORROWING GOVERNMENT DEBT GOVERNMENT DEBT MARKET GOVERNMENT DEBT SECURITIES GOVERNMENT FUNDING GOVERNMENT SECURITIES HOLDINGS HUMAN DEVELOPMENT INCOME RECOGNITION INFLATION INFLATIONARY PRESSURES INFRASTRUCTURE BONDS INSIDER TRADING INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE CORPORATION INSURANCE INDUSTRY INSURANCE PENETRATION INTEREST RATE INTEREST RATE RISK INTERNATIONAL STANDARDS INVESTING INVESTMENT CORPORATION INVESTMENT FUNDS INVESTMENT INSTRUMENT INVESTMENT INSTRUMENTS INVESTMENT POLICY INVESTMENT RESTRICTIONS INVESTOR BASE INVESTOR DEMAND INVESTORS IN GOVERNMENT SECURITIES ISLAMIC BANKS ISLAMIC BOND LEGAL AUTHORITY LEGAL FRAMEWORK LENDERS LIFE INSURANCE LIFE INSURANCE COMPANIES LIQUIDITY LIQUIDITY MANAGEMENT LIQUIDITY POSITION LOAN LONG-TERM DEBT MALFEASANCE MARKET CAPITALIZATION MARKET DISTORTIONS MARKET INSTABILITY MARKET REGULATORS MATURITIES MATURITY MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MINIMUM CAPITAL REQUIREMENTS MONETARY POLICY MONEY MARKET MUTUAL FUND MUTUAL FUND INDUSTRY MUTUAL FUNDS NATIONAL INVESTMENT NATIONAL SAVINGS NON-PERFORMING LOANS OUTSTANDING AMOUNTS PENSION PENSION FUND PENSIONS POST OFFICE PRIMARY MARKET PRIMARY MARKETS PRIVATE BANKS PRIVATE BOND PRIVATE BONDS PRIVATE DEBT PRIVATE DEBT MARKETS PRIVATE INVESTMENT PRIVATE PLACEMENTS PRODUCTIVE INVESTMENT PRUDENTIAL REGULATIONS PUBLIC INVESTMENT REGISTRATION FEE REGISTRATION FEES REGULATORY CAPACITY REGULATORY FRAMEWORK REGULATORY STRUCTURE REMITTANCE REMITTANCES REPO REPO FACILITY REPO MARKET REPOS RESERVE RESERVE REQUIREMENTS RETAIL INVESTORS RETURNS REVERSE REPO TRANSACTIONS RISK MANAGEMENT SAVINGS CERTIFICATES SECONDARY MARKET SECONDARY MARKET TRADING SECONDARY MARKETS SECURITIES SECURITIES MARKETS SECURITIES REGULATION SECURITIES TRANSACTIONS SETTLEMENT SETTLEMENT SYSTEMS SHAREHOLDER SHAREHOLDERS SMALL INVESTORS SOVEREIGN GUARANTEE STAMP DUTIES STATUTORY LIQUIDITY STOCK EXCHANGE STOCK EXCHANGES STOCK MARKET STOCK MARKET PRICES STOCK MARKET VOLATILITY STOCKS SURPLUS LIQUIDITY T-BILL T-BILLS T-BONDS TAX TRADING SYSTEM TRANSACTION TRANSFER OF SECURITIES TRANSPARENCY TREASURY TREASURY BILLS TREASURY BONDS TRUSTEE TRUSTEES TURNOVER UNDERWRITERS YIELD CURVE The Bangladesh stock market experienced significant volatility in late 2010 and early 2011 which took stock values high above fundamentals and threatened the stability of the financial system. This note takes a systematic look at the capital markets underpinnings in Bangladesh, including the regulatory framework, the rule-making bodies and enforcement issues. It also addresses systemic weaknesses responsible for market instability which was observed at the end of 2010 and early 2011. The note analyses the outlines specific areas of potential vulnerabilities of securities markets, as assessed against appropriate practice guidelines for stability, sustainability, transparency, and enforcement. A plan of action going forward is also suggested. This note draws on a considerable amount of prior analytical work. Bangladesh capital markets remain ineffective. The government debt securities markets are illiquid preventing the Bangladesh financial system from relying on a market-based yield curve. Bangladesh has yet to develop an active money market. Trading of treasury bills in the secondary market is limited because these instruments, along with treasury bonds, make up the statutory liquidity reserve and are therefore generally held until maturity by commercial banks and other financial institutions. Trading is also thin in repurchase agreements, for two main reasons. First, commercial banks have a weak treasury function, and most do not actively manage liquidity. Second, there is no standard master repurchase agreement, a gap that should be addressed to support orderly development of the repo market. 2013-02-15T18:04:10Z 2013-02-15T18:04:10Z 2011-06 http://documents.worldbank.org/curated/en/2011/06/16238773/bangladesh-non-lending-technical-assistance-capital-markets http://hdl.handle.net/10986/12365 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Commodities Study Economic & Sector Work South Asia Bangladesh |