Bond market development stressed for long-term financing

Financial experts, at a seminar, stressed on strengthening Bangladesh's bond market as a key source of long-term financing, underscoring the need to reduce excessive reliance on bank loans for corporate and economic growth.

The observations came during the presentation titled "Bond Market Development in Bangladesh: Challenges and Policy Recommendations" by a joint committee from the Ministry of Finance, Bangladesh Bank, and the Bangladesh Securities and Exchange Commission (BSEC) held at Bangladesh Bank's headquarters in Motijheel last Thursday (15 September). 

Top officials of the central bank and BSEC, including BSEC Chairman Khondoker Rashed Maqsood and Commissioners Farzana Lalarukh and other senior policymakers, attended the event, with Bangladesh Bank Governor Ahsan H Mansur in the chair virtually. 

At the presentation, experts highlighted key challenges facing the country's bond market and recommended policy actions to encourage large corporations to raise funds through bonds and securities instead of relying solely on traditional banking channels.

Such measures, they argued, would lower risks in the financial system while supporting macroeconomic stability.

Participants also proposed a national-level seminar bringing together banks, financial institutions, corporates, the Ministry of Finance, Bangladesh Bank, NBR, IDRA, BSEC, and other stakeholders to promote wider use of bonds and capital markets for long-term financing.

The discussion followed up on the Chief Adviser's directives from a high-level meeting on 11 May, where bond market development was declared a top priority. 

Since then, BSEC, in coordination with relevant agencies, has begun implementing measures to advance bond financing.

Officials expressed optimism that with collective efforts, the capital market could emerge as the primary source of long-term financing, boosting both financial market growth and the broader economy.