Review of Contemporary Business Research

Projection of Non Bank Financial Institutions and Money Market: Bangladesh View
Rajib Datta

Abstract
The non-bank financial institutions (NBFIs) constitute a rapidly growing segment of the financial system in Bangladesh. The NBFIs have been contributing toward increasing both the quality and quantity of financial services and thus mitigating the lapses of existing financial intermediation to meet the growing needs of different types of investment in the country. At present, 29 NBFIs are operating their business across the country of which one is government owned, 15 are privately owned local companies, and the remaining 13 are established under joint venture with foreign participation. Non-banking financial companies/institutions, or NBFIs, are financial institutions that provide financial services including banking but do not hold a banking license. These institutions are not allowed to take deposits from the public. The development of non-bank financial institution as financial intermediaries complementary to commercial banks is noticeable in Bangladesh. This paper aims at addressing the market structure of the sector and its change over time by adopting growth measures based on asset, loan, income and expenditure. The study reveals a positive growth of NBFIs over the years in advances, income, assets and others financial aspect and a good contribution in the GDP growth of Bangladesh.

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