Bangladesh : Financial Sector Distress and Lost Economic Growth
The financial system in Bangladesh has suffered from years of systemic and chronic problems, represented by weak supervision and enforcement, deficient accounting and reporting practices, and more importantly, widespread loan defaults and delinquen...
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| Format: | Policy Note |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2000/06/16286549/bangladesh-financial-sector-distress-lost-economic-growth http://hdl.handle.net/10986/15476 |
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okr-10986-15476 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English en_US |
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ACCOUNTING ACCOUNTING STANDARDS ADVERSE IMPACTS ADVERSE SELECTION BANK ASSETS BANK POLICY BANKING INSTITUTIONS BANKING SECTOR BANKING SECTOR ASSETS BANKING SYSTEM BANKS BLACK MARKET BLACK MARKET PREMIUM BROAD MONEY CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL INFLOWS CASH FLOW CASH FLOWS CD CENTRAL BANK CENTRAL BANK NOTE CENTRAL BANKS CIVIL LAW CIVIL LAWS CLOSED ECONOMY COLONIALISM COMMERCIAL BANK COMMERCIAL BANK ASSETS COMMERCIAL BANKING COMMERCIAL BANKS COMMON LAW COMPETITIVENESS CONTRACT ENFORCEMENT CONVERGENCE HYPOTHESIS CORPORATE GOVERNANCE COUNTRY REGRESSIONS CREDIT ALLOCATION CREDITOR CREDITOR RIGHTS CREDITORS CREDITS CROSS-COUNTRY ANALYSIS CURRENCY DEBT DEBT MATURITY DEPENDENT VARIABLE DEPOSIT DEPOSIT RATE DEPOSIT RATES DERIVATIVE DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANKS DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS DOMESTIC SAVINGS DUMMY VARIABLES DYNAMIC PANEL ECONOMETRIC ANALYSIS ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC PERFORMANCE ECONOMIC PERFORMANCES ECONOMIC RESEARCH ECONOMIC THEORY EDUCATIONAL ATTAINMENT EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL RESULTS EMPIRICAL STUDIES ENDOWMENTS ENFORCEMENT MECHANISMS EQUITY MARKETS ERROR TERM ESTIMATED COEFFICIENT ESTIMATED COEFFICIENTS EXCHANGE RATE EXPLANATORY VARIABLES EXTERNAL FINANCE EXTERNAL FINANCING FAMILIES FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CONSTRAINTS FINANCIAL CONTRACTS FINANCIAL DEPTH FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR POLICIES FINANCIAL SECTOR REFORM FINANCIAL SECTORS FINANCIAL SERVICES FINANCIAL SERVICES INDUSTRY FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS FIRM GROWTH GDP GDP PER CAPITA GROWTH IMPACT GROWTH LITERATURE GROWTH MODEL GROWTH RATE GROWTH RATES GROWTH REGRESSION GROWTH REGRESSIONS HOUSEHOLDS HUMAN CAPITAL INCOME INCOME LEVEL INDUSTRIAL COUNTRIES INDUSTRIALIZATION INEFFICIENCY INFORMATION ASYMMETRIES INTEREST RATE INTEREST RATE SPREADS INTEREST RATES INTERNATIONAL FINANCE INTERNATIONAL MARKETS INVESTMENT ACTIVITIES INVESTMENT OPPORTUNITIES JURISDICTIONS LAW ENFORCEMENT LEGAL ENVIRONMENT LEGAL SYSTEMS LEGAL TRADITION LEGAL TRADITIONS LOAN LOAN DEFAULTS LONG-RUN GROWTH LONG-TERM GROWTH M2 MACROECONOMIC DATA MEAN VALUE MONETARY ECONOMICS MORAL HAZARD NPL OUTPUT OUTPUT GROWTH PER CAPITA GROWTH POLICY MAKERS POLICY REFORMS POLICY RESEARCH POLITICAL ECONOMY PRIVATE BANKS PRIVATE CREDIT PRIVATE INVESTMENT PRIVATE SAVING PRIVATE SAVINGS PRODUCTIVE INVESTMENT PRODUCTIVITY GROWTH PUBLIC BANKS PUBLIC GOOD PUBLIC POLICY RATE OF RETURN RATE OF RETURN ON CAPITAL REAL GDP REGRESSION ANALYSIS RESOURCE ALLOCATION RIGHTS OF CREDITORS RISK MANAGEMENT RISK MANAGEMENT SERVICES SAVINGS SAVINGS RATES SECONDARY SCHOOLING SECTOR ACTIVITIES SHAREHOLDERS SOURCE OF FUNDS STANDARD DEVIATION STATE-OWNED ENTERPRISES STATISTICAL ANALYSIS STOCK MARKET STOCK MARKETS TECHNOLOGICAL INNOVATION TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADING TRANSACTION TRANSACTION COSTS WEALTH |
| spellingShingle |
ACCOUNTING ACCOUNTING STANDARDS ADVERSE IMPACTS ADVERSE SELECTION BANK ASSETS BANK POLICY BANKING INSTITUTIONS BANKING SECTOR BANKING SECTOR ASSETS BANKING SYSTEM BANKS BLACK MARKET BLACK MARKET PREMIUM BROAD MONEY CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL INFLOWS CASH FLOW CASH FLOWS CD CENTRAL BANK CENTRAL BANK NOTE CENTRAL BANKS CIVIL LAW CIVIL LAWS CLOSED ECONOMY COLONIALISM COMMERCIAL BANK COMMERCIAL BANK ASSETS COMMERCIAL BANKING COMMERCIAL BANKS COMMON LAW COMPETITIVENESS CONTRACT ENFORCEMENT CONVERGENCE HYPOTHESIS CORPORATE GOVERNANCE COUNTRY REGRESSIONS CREDIT ALLOCATION CREDITOR CREDITOR RIGHTS CREDITORS CREDITS CROSS-COUNTRY ANALYSIS CURRENCY DEBT DEBT MATURITY DEPENDENT VARIABLE DEPOSIT DEPOSIT RATE DEPOSIT RATES DERIVATIVE DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANKS DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS DOMESTIC SAVINGS DUMMY VARIABLES DYNAMIC PANEL ECONOMETRIC ANALYSIS ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC PERFORMANCE ECONOMIC PERFORMANCES ECONOMIC RESEARCH ECONOMIC THEORY EDUCATIONAL ATTAINMENT EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL RESULTS EMPIRICAL STUDIES ENDOWMENTS ENFORCEMENT MECHANISMS EQUITY MARKETS ERROR TERM ESTIMATED COEFFICIENT ESTIMATED COEFFICIENTS EXCHANGE RATE EXPLANATORY VARIABLES EXTERNAL FINANCE EXTERNAL FINANCING FAMILIES FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CONSTRAINTS FINANCIAL CONTRACTS FINANCIAL DEPTH FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR POLICIES FINANCIAL SECTOR REFORM FINANCIAL SECTORS FINANCIAL SERVICES FINANCIAL SERVICES INDUSTRY FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS FIRM GROWTH GDP GDP PER CAPITA GROWTH IMPACT GROWTH LITERATURE GROWTH MODEL GROWTH RATE GROWTH RATES GROWTH REGRESSION GROWTH REGRESSIONS HOUSEHOLDS HUMAN CAPITAL INCOME INCOME LEVEL INDUSTRIAL COUNTRIES INDUSTRIALIZATION INEFFICIENCY INFORMATION ASYMMETRIES INTEREST RATE INTEREST RATE SPREADS INTEREST RATES INTERNATIONAL FINANCE INTERNATIONAL MARKETS INVESTMENT ACTIVITIES INVESTMENT OPPORTUNITIES JURISDICTIONS LAW ENFORCEMENT LEGAL ENVIRONMENT LEGAL SYSTEMS LEGAL TRADITION LEGAL TRADITIONS LOAN LOAN DEFAULTS LONG-RUN GROWTH LONG-TERM GROWTH M2 MACROECONOMIC DATA MEAN VALUE MONETARY ECONOMICS MORAL HAZARD NPL OUTPUT OUTPUT GROWTH PER CAPITA GROWTH POLICY MAKERS POLICY REFORMS POLICY RESEARCH POLITICAL ECONOMY PRIVATE BANKS PRIVATE CREDIT PRIVATE INVESTMENT PRIVATE SAVING PRIVATE SAVINGS PRODUCTIVE INVESTMENT PRODUCTIVITY GROWTH PUBLIC BANKS PUBLIC GOOD PUBLIC POLICY RATE OF RETURN RATE OF RETURN ON CAPITAL REAL GDP REGRESSION ANALYSIS RESOURCE ALLOCATION RIGHTS OF CREDITORS RISK MANAGEMENT RISK MANAGEMENT SERVICES SAVINGS SAVINGS RATES SECONDARY SCHOOLING SECTOR ACTIVITIES SHAREHOLDERS SOURCE OF FUNDS STANDARD DEVIATION STATE-OWNED ENTERPRISES STATISTICAL ANALYSIS STOCK MARKET STOCK MARKETS TECHNOLOGICAL INNOVATION TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADING TRANSACTION TRANSACTION COSTS WEALTH Kojo, Naoko Bangladesh : Financial Sector Distress and Lost Economic Growth |
| geographic_facet |
South Asia Bangladesh |
| description |
The financial system in Bangladesh has
suffered from years of systemic and chronic problems,
represented by weak supervision and enforcement, deficient
accounting and reporting practices, and more importantly,
widespread loan defaults and delinquencies. It is widely
perceived that major inadequacies in the financial sector
have had a considerable growth restraining effect over the
years, by inhibiting private investment activities and
productivity growth, as well as promoting misallocation of
resources. It is paramount important that the government
takes an urgent policy action to reform the mal-functioning
financial sector. The main objective of such reforms is to
develop a market oriented, disciplined modem system for
mobilization of resources, efficient allocation of resources
from both domestic and foreign sources, and reduction of
poverty through sustained economic growth. This paper is
organized as follows. Section two reviews the recent
theoretical and empirical literature on finance and growth.
Section three summarizes the main findings of our
cross-country analysis, conducted to estimate the growth
impact of financial sector distress in Bangladesh. Finally,
section four concludes the paper. |
| format |
Economic & Sector Work :: Policy Note |
| author |
Kojo, Naoko |
| author_facet |
Kojo, Naoko |
| author_sort |
Kojo, Naoko |
| title |
Bangladesh : Financial Sector Distress and Lost Economic Growth |
| title_short |
Bangladesh : Financial Sector Distress and Lost Economic Growth |
| title_full |
Bangladesh : Financial Sector Distress and Lost Economic Growth |
| title_fullStr |
Bangladesh : Financial Sector Distress and Lost Economic Growth |
| title_full_unstemmed |
Bangladesh : Financial Sector Distress and Lost Economic Growth |
| title_sort |
bangladesh : financial sector distress and lost economic growth |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2000/06/16286549/bangladesh-financial-sector-distress-lost-economic-growth http://hdl.handle.net/10986/15476 |
| _version_ |
1764426761029812224 |
| spelling |
okr-10986-154762021-04-23T14:03:14Z Bangladesh : Financial Sector Distress and Lost Economic Growth Kojo, Naoko ACCOUNTING ACCOUNTING STANDARDS ADVERSE IMPACTS ADVERSE SELECTION BANK ASSETS BANK POLICY BANKING INSTITUTIONS BANKING SECTOR BANKING SECTOR ASSETS BANKING SYSTEM BANKS BLACK MARKET BLACK MARKET PREMIUM BROAD MONEY CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL INFLOWS CASH FLOW CASH FLOWS CD CENTRAL BANK CENTRAL BANK NOTE CENTRAL BANKS CIVIL LAW CIVIL LAWS CLOSED ECONOMY COLONIALISM COMMERCIAL BANK COMMERCIAL BANK ASSETS COMMERCIAL BANKING COMMERCIAL BANKS COMMON LAW COMPETITIVENESS CONTRACT ENFORCEMENT CONVERGENCE HYPOTHESIS CORPORATE GOVERNANCE COUNTRY REGRESSIONS CREDIT ALLOCATION CREDITOR CREDITOR RIGHTS CREDITORS CREDITS CROSS-COUNTRY ANALYSIS CURRENCY DEBT DEBT MATURITY DEPENDENT VARIABLE DEPOSIT DEPOSIT RATE DEPOSIT RATES DERIVATIVE DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANKS DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS DOMESTIC SAVINGS DUMMY VARIABLES DYNAMIC PANEL ECONOMETRIC ANALYSIS ECONOMIC ACTIVITIES ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC PERFORMANCE ECONOMIC PERFORMANCES ECONOMIC RESEARCH ECONOMIC THEORY EDUCATIONAL ATTAINMENT EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL RESULTS EMPIRICAL STUDIES ENDOWMENTS ENFORCEMENT MECHANISMS EQUITY MARKETS ERROR TERM ESTIMATED COEFFICIENT ESTIMATED COEFFICIENTS EXCHANGE RATE EXPLANATORY VARIABLES EXTERNAL FINANCE EXTERNAL FINANCING FAMILIES FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CONSTRAINTS FINANCIAL CONTRACTS FINANCIAL DEPTH FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR POLICIES FINANCIAL SECTOR REFORM FINANCIAL SECTORS FINANCIAL SERVICES FINANCIAL SERVICES INDUSTRY FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS FIRM GROWTH GDP GDP PER CAPITA GROWTH IMPACT GROWTH LITERATURE GROWTH MODEL GROWTH RATE GROWTH RATES GROWTH REGRESSION GROWTH REGRESSIONS HOUSEHOLDS HUMAN CAPITAL INCOME INCOME LEVEL INDUSTRIAL COUNTRIES INDUSTRIALIZATION INEFFICIENCY INFORMATION ASYMMETRIES INTEREST RATE INTEREST RATE SPREADS INTEREST RATES INTERNATIONAL FINANCE INTERNATIONAL MARKETS INVESTMENT ACTIVITIES INVESTMENT OPPORTUNITIES JURISDICTIONS LAW ENFORCEMENT LEGAL ENVIRONMENT LEGAL SYSTEMS LEGAL TRADITION LEGAL TRADITIONS LOAN LOAN DEFAULTS LONG-RUN GROWTH LONG-TERM GROWTH M2 MACROECONOMIC DATA MEAN VALUE MONETARY ECONOMICS MORAL HAZARD NPL OUTPUT OUTPUT GROWTH PER CAPITA GROWTH POLICY MAKERS POLICY REFORMS POLICY RESEARCH POLITICAL ECONOMY PRIVATE BANKS PRIVATE CREDIT PRIVATE INVESTMENT PRIVATE SAVING PRIVATE SAVINGS PRODUCTIVE INVESTMENT PRODUCTIVITY GROWTH PUBLIC BANKS PUBLIC GOOD PUBLIC POLICY RATE OF RETURN RATE OF RETURN ON CAPITAL REAL GDP REGRESSION ANALYSIS RESOURCE ALLOCATION RIGHTS OF CREDITORS RISK MANAGEMENT RISK MANAGEMENT SERVICES SAVINGS SAVINGS RATES SECONDARY SCHOOLING SECTOR ACTIVITIES SHAREHOLDERS SOURCE OF FUNDS STANDARD DEVIATION STATE-OWNED ENTERPRISES STATISTICAL ANALYSIS STOCK MARKET STOCK MARKETS TECHNOLOGICAL INNOVATION TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADING TRANSACTION TRANSACTION COSTS WEALTH The financial system in Bangladesh has suffered from years of systemic and chronic problems, represented by weak supervision and enforcement, deficient accounting and reporting practices, and more importantly, widespread loan defaults and delinquencies. It is widely perceived that major inadequacies in the financial sector have had a considerable growth restraining effect over the years, by inhibiting private investment activities and productivity growth, as well as promoting misallocation of resources. It is paramount important that the government takes an urgent policy action to reform the mal-functioning financial sector. The main objective of such reforms is to develop a market oriented, disciplined modem system for mobilization of resources, efficient allocation of resources from both domestic and foreign sources, and reduction of poverty through sustained economic growth. This paper is organized as follows. Section two reviews the recent theoretical and empirical literature on finance and growth. Section three summarizes the main findings of our cross-country analysis, conducted to estimate the growth impact of financial sector distress in Bangladesh. Finally, section four concludes the paper. 2013-08-28T21:41:55Z 2013-08-28T21:41:55Z 2000-06 http://documents.worldbank.org/curated/en/2000/06/16286549/bangladesh-financial-sector-distress-lost-economic-growth http://hdl.handle.net/10986/15476 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work :: Policy Note Economic & Sector Work South Asia Bangladesh |