In an interview with The Daily Star, Bhandari said traditional methods of borrowing, such as standard bank loans and loans from friends and family would need to be supplemented by new sources.

"This will open up the capital market to a number of products, which will in turn galvanise the market participants to take part in the trading, origination and management of these products," he said.

"To say the least, market volumes will pick up as the Bangladesh economy develops steam and surges ahead."

He said the challenge for Bangladesh would be its ability to implement proper risk management procedures, educate the market and gain the confidence of all participants.

"As new products are introduced, the issuers and investors must have the proper tools and confidence to handle them. This is initially a slow, gradual process, as regulators, issuers and investors are all cautious, but once a few products are introduced and well managed, market confidence will increase and market development will gather pace."

"With the introduction of more products, the market will not only deepen, but customers will also have more choices. We are very positive," he added.

Bhandari is responsible for several Asian countries including India, Bangladesh, Sri Lanka, Nepal, Mauritius and Afghanistan. Of these, Bangladesh is the largest market for Standard Chartered Bank after India, due to its huge potential and human resources.

"We have a long history in Bangladesh and are committed to its future development," he said, adding that the bank increasingly invested in people, technology and premises as its business grew in step with the country's thriving economy.

Bhandari said GDP growth of over six percent for the last few years, robust growth in exports, a monumental increase in wage earners' remittances and the highest-ever foreign exchange reserve of over US$ 4 billion, were strong positive indicators by which to attract financial institutions as well as local and foreign investors.

"We at Standard Chartered believe in leading the way in all our market by delivering continuous product innovation. Striking the first forex derivatives deal in the local market is a testimony to our commitment in market development," he said.