For starting

 A healthy financial sector is crucial for economic growth especially for economies like Bangladesh. Because growth in Bangladesh must come largely from exports and its enterprises must therefore be internationally competitive. But unfortunately Bangladesh has a financial system which borrowers fail to repay loans foreclosure is almost unheard of and the government and receives periodic capital transfusions to keep themselves going. Thus commercial banks are at the heart of the problem in Bangladesh financial sector. The problems in the financial sector in Bangladesh are many. Specific mention of these problems is a difficult job. However the crucial problem of our financial sector may be identified as under. Small domestic private banks are hardly better off. They offer no serious competition to nationalized banks. Better examination is revealing imprudent insider lending and capital shortfalls in several instances. Estimates based on unaided financial statements suggest that at the end of 1994 the private banks needed more than 13 billion just to meet current regulations on capital adequacy. Inadequate prudential regulation and weak suppression is a recipe for banking problems. Poor enforcement capacity robs weak suppression of what little effect it might have. Both provisioning and capital adequacy requirements have been well below international standards. Poor prudential regulation and suppression are made all the worse by an inadequate legal framework for loan recovery foreclosure and liquidation. Bangladesh lacks such a framework. Banks are mot the problem in the financial sector of Bangladesh. Capital markets are small and do not offer a competitive alternative to band borrowing. Stock market capitalization relative to gdp is some 25 to 75 times smaller than in neighboring south Asian countries.