Performance of Merchant Banking in Bangladesh

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Performance of Merchant Banking in Bangladesh

By | October 2011
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1. Introduction

1.1 Origin

The preparation of this report is a requirement of the course on “Management of Financial Institutions”, M. Jahangir Alam Chowdhury, Professor of Finance Department at Faculty of Business Studies, University of Dhaka, who is also the course instructor has assigned us a topics regarding “Merchants Banks in Bangladesh” where industry performance and activities are analyzed by the listed merchants banker in our country.

1.2 Background

The Progress of any economy mainly depends on the efficient financial system of the country. This importance of the financial sector reforms affirms an effective means for solving the problems of economic, financial and social in the developing nations of the world. The progress of the securities Industry of any country depends mainly on the flow of funds. In fact, Capital generation is the lifeblood of the capital market without which the health and soundness of the financial system cannot be geared up and for which well-developed capital market as well as money market is essential. The merchant bankers are those financial intermediaries involved with the activity of transferring capital funds to those borrowers who are interested in borrowing. They guarantee the success of issues by underwriting them. Merchant Banks are popularly known as “issuing and accepting houses”. So, in this report we tried to find out the activities and industry performances by merchant banks in Bangladesh.

1.3 Objective of the Report

The main purpose of this study is to create a bridge between our theoretical knowledge & the practical scenario.

The specific objectives of the study are:

1. To gain an understanding about the Merchant Banking and its practices in Bangladesh. 2. To assess the role and contribution of Merchants Banker in Bangladesh. 3. To identify the major problems faced by Merchants Banker in Bangladesh. 4. To assess the future prospect of the Merchants Banker in Bangladesh....