Pest Analysis

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Government of Bangladesh has created a favorable environment for private banking sector, which attracts many investors to invest in the financial market. Bangladesh has been doing very well in private sectors in recent years. Previously only government banks were here to serve the financial needs of consumers, but now varieties of services are offered by commercial banks which were not possible before. Financial assistance is very necessary to develop all the sectors which are provided by the central bank of Bangladesh. Central bank boosts commercial banks to finance more and more in the agricultural sectors, pharmaceuticals sectors. Government puts pressure on these banks to provide loans to SMEs and individuals.

PEST Analysis (Political, Economic, Social, and Technological) A PEST analysis is an analysis of the external macro-environment that affects all firms including banking industry. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment. Political Factors

In case of Bangladesh, political instability like hartal makes difficulties in both domestic and international trade. As a result banking transactions are also stuck. Beside this corruption is another factor which hampers business environment. Growing US influence though ambiguous, relations with the US remain all important, strategically and economically. The US remains a guarantor of the balance of power in several parts of the region. Limited EU Influence:

The EU shows increased interest and involvement in trade aid and good governance issues in Asia, but it is not a threat to the autonomy of the states. Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include; Political stability, Legal framework for contract enforcement, Trade regulations & tariffs, Pricing regulations, Taxation - tax rates and incentives, Wage...
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