Title: Long-term financing: a critical assessment of the bond market in Bangladesh and the way forward

Authors: Prashanta Kumar Banerjee; Mohammad Mohiuddin Siddique; Md. Shahid Ullah; Md. Akhtaruzzaman

Addresses: Bangladesh Institute of Bank Management (BIBM), Mirpur 2, Dhaka, 1216, Bangladesh ' Bangladesh Institute of Bank Management (BIBM), Mirpur 2, Dhaka, 1216, Bangladesh ' Bangladesh Institute of Bank Management (BIBM), Mirpur 2, Dhaka, 1216, Bangladesh ' Bangladesh Institute of Bank Management (BIBM), Mirpur 2, Dhaka, 1216, Bangladesh

Abstract: The paper critically assessed the bond market of Bangladesh aiming to provide policy suggestions for developing a fixed-income securities market for financing long-term initiatives of the Government as well as the corporate sector. The paper covers the sequential development of the bond market in Bangladesh, determinants of the Government bond market (GBM), and constraints and ways out for the development of the bond market in Bangladesh. As per the findings, the paper has suggested a host of remedial measures regarding the improvement of macro-economic and financial condition s, soundness of law and order situation; active primary and secondary market; investor diversity; and other issues like selecting benchmark securities, forming yield curve, removing tax intricacy, enhancing capacity of the regulators, creating awareness among issuers and investors and adding new financial products to develop a vibrant bond market in Bangladesh as an alternative avenue of long term finance.

Keywords: long-term finance; government bond; corporate bond; ARDL; autoregressive distributed lag model; VECM; vector error correction model; primary market; secondary market; investors; issuers.

DOI: 10.1504/IJTGM.2024.145841

International Journal of Trade and Global Markets, 2024 Vol.20 No.3/4, pp.260 - 289

Received: 03 Sep 2024
Accepted: 29 Oct 2024
Published online: 29 Apr 2025 *

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