Though less recognized than banks, Non-Bank Financial Institutions (NBFIs) have played a crucial role in shaping Bangladesh’s economic landscape, acting as essential sources of lending and borrowing for the past four decades.
In the face of current economic challenges, NBFIs in Bangladesh can adopt several strategies to navigate and strengthen the finance sector.
The key challenges facing NBFIs or finance companies are rooted in an image problem due to governance issues of some of the NBFIs.
The overall economy, including banks and Non-Banking Financial Institutions (NBFIs), is experiencing significant challenges.
In the turbulent landscape of 2023, the financial sector faced challenges such as a surge in non-performing loans, contracting spreads, and liquidity constraints.
Constructing a resilient financial system is paramount for a nation’s economic advancement. In Bangladesh, Non-Banking Financial Institutions (NBFIs) have been playing a pivotal role alongside banks in stimulating economic activity. They offer tailored financial services that not only foster business expansion but also enhance individual welfare, thereby enriching the financial landscape of the country.
In the financial sector, Non-Banking Financial Institutions (NBFIs) are frequently overlooked despite playing a role no less vital than traditional banks.
Non-bank financial institutions (NBFIs) in Bangladesh play a pivotal role in the country’s financial ecosystem, offering services ranging from leasing and housing finance to merchant banking and microcredit.
