Bangladesh : Financial Sector Distress and Lost Economic Growth

Kojo, Naoko

World Bank, Washington, DC

关键词: ACCOUNTING;    ACCOUNTING STANDARDS;    ADVERSE IMPACTS;    ADVERSE SELECTION;    BANK ASSETS;   

RP-ID  :  69039

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The financial system in Bangladesh hassuffered from years of systemic and chronic problems,represented by weak supervision and enforcement, deficientaccounting and reporting practices, and more importantly,widespread loan defaults and delinquencies. It is widelyperceived that major inadequacies in the financial sectorhave had a considerable growth restraining effect over theyears, by inhibiting private investment activities andproductivity growth, as well as promoting misallocation ofresources. It is paramount important that the governmenttakes an urgent policy action to reform the mal-functioningfinancial sector. The main objective of such reforms is todevelop a market oriented, disciplined modem system formobilization of resources, efficient allocation of resourcesfrom both domestic and foreign sources, and reduction ofpoverty through sustained economic growth. This paper isorganized as follows. Section two reviews the recenttheoretical and empirical literature on finance and growth.Section three summarizes the main findings of ourcross-country analysis, conducted to estimate the growthimpact of financial sector distress in Bangladesh. Finally,section four concludes the paper.