Lease Perspective of Bangladesh
1. | Introduction |
The importance of leasing business is enhancing with the expansion of industrial sector in Bangladesh. Before the advent of leasing companies in Bangladesh commercial banks and development finance institutions (DFIs) have been the traditional lending institutions in Bangladesh. In fact, the concept of lease financing is a relatively new one in the country. Initially, leasing companies had to adopt the role of educators to make Bangladeshi entrepreneurs aware of the benefits of leasing.
However, Lease financing was first introduced in Bangladesh in the early 1980s. The first leasing company of Bangladesh, Industrial Development Leasing Company of Bangladesh Ltd. (IDLC) was established in 1986 under the regulatory framework of Bangladesh Bank. . It was a joint venture of the Industrial Promotion and Development Company of Bangladesh Ltd. (IPDC), International Finance Corporation, and Korea Development Leasing Corporation.
At present, there are 26 leasing companies operating in Bangladesh.
Origin of the Report: This report is required for the course “Investment Banking & Lease Financing” (F-403) which is offered by the BBA program under Department of Finance, University of Dhaka. Under the supervision of our course instructor lecturer Tahmina D`ipty, this report is prepared on a specific topic named “Lease Financing in Bangladesh” and is based on the leasing companies currently operating in Bangladesh. This report describes the functions of leasing companies, and rules and regulations associated with lease.
Objectives: * To compare the performances of the current lease loan providers. * To develop a clear idea about the leasing sector in Bangladesh. * To find out market potential for lease loan products. * To develop a clear idea about the leasing sector in Bangladesh. * To identify the major lease loan providers in the market and analyze their offers to the clients. * To get a thorough know-how about
The importance of leasing business is enhancing with the expansion of industrial sector in Bangladesh. Before the advent of leasing companies in Bangladesh commercial banks and development finance institutions (DFIs) have been the traditional lending institutions in Bangladesh. In fact, the concept of lease financing is a relatively new one in the country. Initially, leasing companies had to adopt the role of educators to make Bangladeshi entrepreneurs aware of the benefits of leasing.
However, Lease financing was first introduced in Bangladesh in the early 1980s. The first leasing company of Bangladesh, Industrial Development Leasing Company of Bangladesh Ltd. (IDLC) was established in 1986 under the regulatory framework of Bangladesh Bank. . It was a joint venture of the Industrial Promotion and Development Company of Bangladesh Ltd. (IPDC), International Finance Corporation, and Korea Development Leasing Corporation.
At present, there are 26 leasing companies operating in Bangladesh.
Origin of the Report: This report is required for the course “Investment Banking & Lease Financing” (F-403) which is offered by the BBA program under Department of Finance, University of Dhaka. Under the supervision of our course instructor lecturer Tahmina D`ipty, this report is prepared on a specific topic named “Lease Financing in Bangladesh” and is based on the leasing companies currently operating in Bangladesh. This report describes the functions of leasing companies, and rules and regulations associated with lease.
Objectives: * To compare the performances of the current lease loan providers. * To develop a clear idea about the leasing sector in Bangladesh. * To find out market potential for lease loan products. * To develop a clear idea about the leasing sector in Bangladesh. * To identify the major lease loan providers in the market and analyze their offers to the clients. * To get a thorough know-how about