Creating a More Efficient Financial System : Challenges for Bangladesh
While Bangladesh has embarked on a path to reform its financial system, most prominently by privatizing its government-owned banks, the Nationalized Commercial Banks (NCBs), a sustainable long-term expansion of the financial system requires a more substantial change in the role of government. Using...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2006/06/6840063/creating-more-efficient-financial-system-challenges-bangladesh http://hdl.handle.net/10986/8441 |
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okr-10986-8441 |
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oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ACCOUNTING STANDARDS ADB ADVERSE SELECTION AGRICULTURAL BANKS AGRICULTURE AUDITING AUTOREGRESSION BALANCE SHEETS BANK ACCOUNTS BANK BRANCHES BANK DEPOSITS BANK FAILURE BANK FAILURE RESOLUTION BANK LOANS BANK RUNS BANKING CRISES BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKRUPTCY BANKRUPTCY COURTS BANKS BENCHMARK BENCHMARKING BORROWING BROKERS CAPITAL MARKETS CAPITALIZATION COMMERCIAL BANKS COMPANY COMPETITIVENESS CONFLICTS OF INTEREST CONSUMER PRICE INDEX CONTROLLING SHAREHOLDER CORPORATE DECISIONS CORPORATE GOVERNANCE CORPORATIONS COUNTRY COMPARISONS DEBT DEPOSIT ACCOUNTS DEPOSIT INSURANCE DEPOSITS DIVESTMENT DIVIDENDS EARNING ASSETS ECONOMIC GROWTH EMPLOYMENT EXCHANGE COMMISSION EXPECTED RETURN EXTERNAL FINANCING FINANCIAL CONTRACTS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY DEVELOPMENT FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL REGULATION FINANCIAL REPORTS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SYSTEMS FINANCIAL TRANSACTIONS GDP PER CAPITA GROWTH RATE HUMAN CAPITAL INCOME INCORPORATED INDIVIDUALS INFLATION INFLATION RATE INFLATION RATES INITIAL PUBLIC OFFERINGS INSIDE INFORMATION INSTITUTIONAL INVESTORS INTEREST COSTS INTEREST RATE INTEREST RATES INVESTMENT ACTIVITIES INVESTMENT ACTIVITY INVESTMENT PROJECTS IPOS JOINT STOCK COMPANIES LEGISLATION LENDING PRACTICES LEVEL PLAYING FIELD LIMITED LIMITED LIABILITY LIMITED LIABILITY COMPANIES LIQUIDATION LIQUIDITY M2 MACROECONOMIC STABILITY MARKET DISCIPLINE MICROFINANCE MINORITY SHAREHOLDER MINORITY SHAREHOLDERS MORAL HAZARD MUTUAL FUND MUTUAL FUNDS NATIONALIZED BANKS OPERATING COSTS OVERHEAD COSTS PAYOUT PER CAPITA INCOME PORTFOLIO PRINCIPAL-AGENT PRINCIPAL-AGENT PROBLEMS PRIVATE COMMERCIAL BANKS PRIVATE EQUITY PRIVATE PENSION PRIVATE PROPERTY PRIVATIZATION PROPERTY RIGHTS PROTECTION OF MINORITY SHAREHOLDER PUBLIC FIRMS RATE OF RETURN REAL GDP REGULATORY CAPTURE RESOURCE ALLOCATION RETAINED EARNINGS SAVINGS SAVINGS SCHEMES SECURITIES SHAREHOLDER RIGHTS SOCIETY SOUTH ASIAN STATEMENTS STOCK EXCHANGE STOCK MARKET STOCK MARKETS STOCK PRICE STOCKS TIME DEPOSITS TOTAL COSTS TRADABLE SECURITIES TRANSACTION COSTS TRANSPARENCY WEALTH WORKING CAPITAL |
| spellingShingle |
ACCOUNTING ACCOUNTING STANDARDS ADB ADVERSE SELECTION AGRICULTURAL BANKS AGRICULTURE AUDITING AUTOREGRESSION BALANCE SHEETS BANK ACCOUNTS BANK BRANCHES BANK DEPOSITS BANK FAILURE BANK FAILURE RESOLUTION BANK LOANS BANK RUNS BANKING CRISES BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKRUPTCY BANKRUPTCY COURTS BANKS BENCHMARK BENCHMARKING BORROWING BROKERS CAPITAL MARKETS CAPITALIZATION COMMERCIAL BANKS COMPANY COMPETITIVENESS CONFLICTS OF INTEREST CONSUMER PRICE INDEX CONTROLLING SHAREHOLDER CORPORATE DECISIONS CORPORATE GOVERNANCE CORPORATIONS COUNTRY COMPARISONS DEBT DEPOSIT ACCOUNTS DEPOSIT INSURANCE DEPOSITS DIVESTMENT DIVIDENDS EARNING ASSETS ECONOMIC GROWTH EMPLOYMENT EXCHANGE COMMISSION EXPECTED RETURN EXTERNAL FINANCING FINANCIAL CONTRACTS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY DEVELOPMENT FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL REGULATION FINANCIAL REPORTS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SYSTEMS FINANCIAL TRANSACTIONS GDP PER CAPITA GROWTH RATE HUMAN CAPITAL INCOME INCORPORATED INDIVIDUALS INFLATION INFLATION RATE INFLATION RATES INITIAL PUBLIC OFFERINGS INSIDE INFORMATION INSTITUTIONAL INVESTORS INTEREST COSTS INTEREST RATE INTEREST RATES INVESTMENT ACTIVITIES INVESTMENT ACTIVITY INVESTMENT PROJECTS IPOS JOINT STOCK COMPANIES LEGISLATION LENDING PRACTICES LEVEL PLAYING FIELD LIMITED LIMITED LIABILITY LIMITED LIABILITY COMPANIES LIQUIDATION LIQUIDITY M2 MACROECONOMIC STABILITY MARKET DISCIPLINE MICROFINANCE MINORITY SHAREHOLDER MINORITY SHAREHOLDERS MORAL HAZARD MUTUAL FUND MUTUAL FUNDS NATIONALIZED BANKS OPERATING COSTS OVERHEAD COSTS PAYOUT PER CAPITA INCOME PORTFOLIO PRINCIPAL-AGENT PRINCIPAL-AGENT PROBLEMS PRIVATE COMMERCIAL BANKS PRIVATE EQUITY PRIVATE PENSION PRIVATE PROPERTY PRIVATIZATION PROPERTY RIGHTS PROTECTION OF MINORITY SHAREHOLDER PUBLIC FIRMS RATE OF RETURN REAL GDP REGULATORY CAPTURE RESOURCE ALLOCATION RETAINED EARNINGS SAVINGS SAVINGS SCHEMES SECURITIES SHAREHOLDER RIGHTS SOCIETY SOUTH ASIAN STATEMENTS STOCK EXCHANGE STOCK MARKET STOCK MARKETS STOCK PRICE STOCKS TIME DEPOSITS TOTAL COSTS TRADABLE SECURITIES TRANSACTION COSTS TRANSPARENCY WEALTH WORKING CAPITAL Beck, Thorsten Rahman, Md. Habibur Creating a More Efficient Financial System : Challenges for Bangladesh |
| geographic_facet |
South Asia Bangladesh |
| relation |
Policy Research Working Paper; No. 3938 |
| description |
While Bangladesh has embarked on a path to reform its financial system, most prominently by privatizing its government-owned banks, the Nationalized Commercial Banks (NCBs), a sustainable long-term expansion of the financial system requires a more substantial change in the role of government. Using recent research and international comparisons, this paper argues that the government should move from its role as an operator and arbiter in the financial system to a facilitator role. This implies not only divestment from government-owned banks, but also de-politicization of the licensing process and a market-based bank failure resolution framework that focuses on intermediation and not on the rescue of individual institutions. Most important, the government should move away from the implicit guarantee for depositors and owners to applying the existing limited explicit deposit insurance for depositors, while simultaneously relying more on market participants to monitor and discipline banks instead of micro-managing financial institutions. This redefinition of government's role should not be limited to the banking system, but applies to other segments of the financial system, such as capital markets and the micro-finance sector, and should be seen as an essential element in the governance reform agenda and in the movement from a relationship-based economy to a market and arms-length economy. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Beck, Thorsten Rahman, Md. Habibur |
| author_facet |
Beck, Thorsten Rahman, Md. Habibur |
| author_sort |
Beck, Thorsten |
| title |
Creating a More Efficient Financial System : Challenges for Bangladesh |
| title_short |
Creating a More Efficient Financial System : Challenges for Bangladesh |
| title_full |
Creating a More Efficient Financial System : Challenges for Bangladesh |
| title_fullStr |
Creating a More Efficient Financial System : Challenges for Bangladesh |
| title_full_unstemmed |
Creating a More Efficient Financial System : Challenges for Bangladesh |
| title_sort |
creating a more efficient financial system : challenges for bangladesh |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2006/06/6840063/creating-more-efficient-financial-system-challenges-bangladesh http://hdl.handle.net/10986/8441 |
| _version_ |
1764406281720823808 |
| spelling |
okr-10986-84412021-04-23T14:02:41Z Creating a More Efficient Financial System : Challenges for Bangladesh Beck, Thorsten Rahman, Md. Habibur ACCOUNTING ACCOUNTING STANDARDS ADB ADVERSE SELECTION AGRICULTURAL BANKS AGRICULTURE AUDITING AUTOREGRESSION BALANCE SHEETS BANK ACCOUNTS BANK BRANCHES BANK DEPOSITS BANK FAILURE BANK FAILURE RESOLUTION BANK LOANS BANK RUNS BANKING CRISES BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKRUPTCY BANKRUPTCY COURTS BANKS BENCHMARK BENCHMARKING BORROWING BROKERS CAPITAL MARKETS CAPITALIZATION COMMERCIAL BANKS COMPANY COMPETITIVENESS CONFLICTS OF INTEREST CONSUMER PRICE INDEX CONTROLLING SHAREHOLDER CORPORATE DECISIONS CORPORATE GOVERNANCE CORPORATIONS COUNTRY COMPARISONS DEBT DEPOSIT ACCOUNTS DEPOSIT INSURANCE DEPOSITS DIVESTMENT DIVIDENDS EARNING ASSETS ECONOMIC GROWTH EMPLOYMENT EXCHANGE COMMISSION EXPECTED RETURN EXTERNAL FINANCING FINANCIAL CONTRACTS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY DEVELOPMENT FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL REGULATION FINANCIAL REPORTS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SYSTEMS FINANCIAL TRANSACTIONS GDP PER CAPITA GROWTH RATE HUMAN CAPITAL INCOME INCORPORATED INDIVIDUALS INFLATION INFLATION RATE INFLATION RATES INITIAL PUBLIC OFFERINGS INSIDE INFORMATION INSTITUTIONAL INVESTORS INTEREST COSTS INTEREST RATE INTEREST RATES INVESTMENT ACTIVITIES INVESTMENT ACTIVITY INVESTMENT PROJECTS IPOS JOINT STOCK COMPANIES LEGISLATION LENDING PRACTICES LEVEL PLAYING FIELD LIMITED LIMITED LIABILITY LIMITED LIABILITY COMPANIES LIQUIDATION LIQUIDITY M2 MACROECONOMIC STABILITY MARKET DISCIPLINE MICROFINANCE MINORITY SHAREHOLDER MINORITY SHAREHOLDERS MORAL HAZARD MUTUAL FUND MUTUAL FUNDS NATIONALIZED BANKS OPERATING COSTS OVERHEAD COSTS PAYOUT PER CAPITA INCOME PORTFOLIO PRINCIPAL-AGENT PRINCIPAL-AGENT PROBLEMS PRIVATE COMMERCIAL BANKS PRIVATE EQUITY PRIVATE PENSION PRIVATE PROPERTY PRIVATIZATION PROPERTY RIGHTS PROTECTION OF MINORITY SHAREHOLDER PUBLIC FIRMS RATE OF RETURN REAL GDP REGULATORY CAPTURE RESOURCE ALLOCATION RETAINED EARNINGS SAVINGS SAVINGS SCHEMES SECURITIES SHAREHOLDER RIGHTS SOCIETY SOUTH ASIAN STATEMENTS STOCK EXCHANGE STOCK MARKET STOCK MARKETS STOCK PRICE STOCKS TIME DEPOSITS TOTAL COSTS TRADABLE SECURITIES TRANSACTION COSTS TRANSPARENCY WEALTH WORKING CAPITAL While Bangladesh has embarked on a path to reform its financial system, most prominently by privatizing its government-owned banks, the Nationalized Commercial Banks (NCBs), a sustainable long-term expansion of the financial system requires a more substantial change in the role of government. Using recent research and international comparisons, this paper argues that the government should move from its role as an operator and arbiter in the financial system to a facilitator role. This implies not only divestment from government-owned banks, but also de-politicization of the licensing process and a market-based bank failure resolution framework that focuses on intermediation and not on the rescue of individual institutions. Most important, the government should move away from the implicit guarantee for depositors and owners to applying the existing limited explicit deposit insurance for depositors, while simultaneously relying more on market participants to monitor and discipline banks instead of micro-managing financial institutions. This redefinition of government's role should not be limited to the banking system, but applies to other segments of the financial system, such as capital markets and the micro-finance sector, and should be seen as an essential element in the governance reform agenda and in the movement from a relationship-based economy to a market and arms-length economy. 2012-06-19T17:22:45Z 2012-06-19T17:22:45Z 2006-06 http://documents.worldbank.org/curated/en/2006/06/6840063/creating-more-efficient-financial-system-challenges-bangladesh http://hdl.handle.net/10986/8441 English Policy Research Working Paper; No. 3938 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia Bangladesh |