Some Recent Trends of Bangladeshi Commercial Banking System

Banks are most probably the most important type of financial institutions in Bangladesh. Although there are two fully operating stock exchanges in Bangladesh still the majority portion of demand for financial services are addressed by commercial banks. Banks traditionally, contributes the economy through intermediation. Though intermediation is the most important task of commercial banks, in recent years in some developed countries it experienced a declining trend. In this paper, we tried get an overview ofdifferent trends of commercial banks in Bangladesh. We also looked into the dynamic relationship between banks and Non-bank Financial Institutions (NBFIs). We have found that different reform projects carried through last two decades have a beneficial effect on banking. We also found that NBFIs, although still relatively less significant compared to banks are growing and they are taking away shares from banks in both loan and deposit market. The paper, however, has not taken into consideration the effect of thrifts, which operate among less privileged section of the economy.