Development of capital market and financing future growth in Bangladesh

Abstract

This chapter highlights various aspects of the capital market in Bangladesh, which now consists of two stock exchanges-Dhaka and Chittagong stock exchanges. After a crash in 2010, various policy reforms helped the market return to its normal behavior. Lack of institutional investors and underdeveloped secondary bond market are key impediments of the capital market to meet the financing needs of the country in the backdrop of its graduation from the least developed country (LDC) status, which is likely to be achieved in 2024. Therefore, a set of recommendations is made in this chapter for further development of the capital market in Bangladesh.