Bangladesh’s bond market is one of the smallest in Asia as its size is only 8.06 per cent of the Gross Domestic Product (GDP), said a research finding.
Among the total, the share of the corporate bond market is very negligible (0.2 per cent) compared to the government dominated bonds (7.86 per cent), said the Bangladesh Institute of Bank Management (BIBM) research.
Bangladesh is on heavily lower trajectory even compared to its trade competitors India and Vietnam, said the research titled “Development of bond market in Bangladesh.”
Indian’s bond market takes up 18.74 per cent of GDP while the Vietnam’s bond market takes 22.98 per cent of GDP, said the research, released on Thursday in Dhaka.
Dr. Prashanta Kumar Banerjee, Professor and BIBM Director, presented the research findings at a roundtable discussion meeting in Dhaka.
The BIBM research showed that Bangladesh’s debt instrument is heavily dependent on NSD as its growth in the financial year (FY) 2016-17 was 37.37 per cent compared to the previous FY2016.
On the other hand, the growth of the T-bills and T-bonds in Bangladesh dropped by 0.16 per cent the FY2017 compared to FY2016, the research paper showed.
Banking reforms advisor and Former Deputy Governor of the Bangladesh Bank S K Sur Chowdhury was present as the chief guest at the meeting.