8/3/2019 48483188-NBFIs-Banglapedia
2/2
The non-bank financial institutions operating in East Pakistan
were the Industrial Development
Bank of Pakistan, Equity Participation Fund, Pakistan Industrial
Credit and Investment Trust
Corporation, Investment Corporation of Pakistan, National
Investment Trust and insurancecompanies. Such institutions
established in Bangladesh in the 1970s include the House
Building
Finance Corporation (1973) and the Investment Corporation of
Bangladesh (1976). Other NBFIs
established in the country up to 31 August 2000 are United
Leasing Co., Industrial Developmentand Leasing Company, Industrial
Promotion and Development Company, Saudi-Bangladesh
Industrial and Agricultural Investment Company, Phoenix Leasing
Company, Union Capital,
Uttara Finance and Investment, UAE-Bangladesh Investment
Company, International Leasingand Financial Services, Prime Finance
and Investment, Bahrain Bangladesh Finance and
Investment Company, Bay Leasing and Investment, Delta-BRAC
Housing Finance Corporation,
Vanik Bangladesh, Peoples Leasing and Financial Services,
Infrastructural Development
Company, Bangladesh Industrial Finance Company, National Housing
Finance and Investment,MIDAS Financing, First Lease International
and Bangladesh Finance and Investment. These
institutions extended their business in industrial, commercial
and housing financing, and in the
stock market activities. They are also granted permission by the
Bangladesh Bank to participate
in the inter-bank money market transactions. As on 31 December
1999, the total paid up capitaland reserves of these NBFIs in
Bangladesh stood at Tk 5.885 billion and their investment in
different sectors totaled to Tk 12.087 billion.
Bangladesh Bank is empowered to oversee and regulate the affairs
of the NBFIs under theprovisions of the Financial Institutions Act
1993 and the Financial Institutions Rules 1994. To
improve the quality of financial intermediation and meet up the
growing needs of funds for
financing investments in different sectors of the economy, the
government intends to intensifythe financial market by granting
permission to establish private NBFIs in conjunction with the
private commercial banks. At present, non-bank financial sector
of the country comprises
investment and finance companies, merchant bankers, leasing
companies, mortgage banks,
insurance companies, and theCAPITAL
MARKET
. Although small, the NBFI sector in Bangladesh is agrowing
component of the entire financial sector and NBFIs as a group
create an opportunity to
improve financial intermediation for the economy. NBFIs account
for only 4% of the assets of
the financial sector, compared to 70% accruing to the
nationalised commercial banks (NCB) and25% to the local private
banks. NBFIs, however, account for 25% of the term financing
(FY
1998-99) through leasing, project finance and merchant banking
activities. The volume of term
finance they provided in the last four years increased at the
rate of 41% per annum, while that ofthe NCB decreased by 40%
between 1997 and 1999.
http://www.banglapedia.org/httpdocs/HT/C_0037.HTMhttp://www.banglapedia.org/httpdocs/HT/C_0037.HTMhttp://www.banglapedia.org/httpdocs/HT/C_0037.HTMhttp://www.banglapedia.org/httpdocs/HT/C_0037.HTMhttp://www.banglapedia.org/httpdocs/HT/C_0037.HTM
