State of the Bangladesh Economy in FY2021-22
Independent Review of
RBD
Bangladesh's Development
Factors responsible for market trend
Margin Loan Correction
➤ during the pandemic with a view to increase flow of fund. BSEC revised the margin loan
ratio in September at a 1:1 ratio if the broad index exists up to the 4,000 thresholds
➤ There were further adjustments and changes in November, 2021.
Deposit rate
➤ Low deposit rate has contributed to the high trading volume in the country's stock market.
During the pandemic, the low return on bank deposits drove people away from the banking
sector towards the capital market.
□ Low Credit Demand and High Liquidity
Lack of credit demand and high banks' liquidity came up as a key factor for stock market
bubble during the pandemic.
the banking surplus liquidity stood at Tk 204,070 crore as of January 2021, a year-on-year
surge of 97 percent.
The contribution of investment income rose to a higher extent in 2020 because of banks'
high investment in treasury bills, bonds, and the stock market. Banks' investment in bonds
and other securities rose 8.84 percent to Tk 314,747 crore in the second quarter of last year.
Investment income surged Tk 842 crore, or 49 percent, to Tk 2,546 crore in the quarter.
CPD (2021): State of the Bangladesh Economy in FY2021-22 (First Reading)
73View entire presentation