http://www.reportsandreports.com/market-reports/bangladesh-commercial-banking-report-q2-2010/
Business Monitor International
Country Reports
Report Summary
Since Q108, we have described numerically the banking business environment for each of the countries surveyed by BMI. We do this through our Commercial Banking Business Environment Rating (CBBER), a measure that ensures we capture the latest quantitative information available. It also ensures consistency across all countries and between the inputs to the CBBER and the Insurance Business Environment Rating, which is likewise now a feature of our insurance reports. Like the Business Environment Ratings calculated by BMI for all the other industries on which it reports, the CBBER takes into account the limits of potential returns and the risks to the realisation of those returns. It is weighted 70% to the former and 30% to the latter.
The evaluation of the Limits of Potential Returns includes market elements that are specific to the banking industry of the country in question and elements that relate to that country in general. Within the 70% of the CBBER that takes into account the Limits of Potential Returns, the market elements have a 60% weighting and the country elements have a 40% weighting. The evaluation of the Risks to the Realisation of Returns also includes banking elements and country elements (specifically, BMI’s assessment of long-term country risk). However, within the 30% of the CBBER that take into account the risks, these elements are weighted 40% and 60%, respectively.
Further details on how we calculate the CBBER are provided at the end of this report. In general, though, three aspects need to be borne in mind in interpreting the CBBERs. The first is that the market elements of the Limits of Potential Returns are by far the most heavily weighted of the four elements. They account for 60% of 70% (or 42%) of the overall CBBER. Second, if the market elements are significantly higher than the country elements of the Limits of Potential Returns, it usually implies that the banking sector is (very) large and/or developed relative to the general wealth, stability and financial infrastructure in the country. Conversely, if the market elements are significantly lower than the country elements, it usually means that the banking sector is small and/or underdeveloped relative to the general wealth, stability and financial infrastructure in the country. Third, within the Risks to the Realisation of Returns category, the market elements (ie: how regulations affect the development of the sector, how regulations affect competition within it, and Moody’s Investor Services’ ratings for local currency deposits) can be markedly different from BMI’s long-term risk rating.
Since Q108, we have described numerically the banking business environment for each of the countries surveyed by BMI. We do this through our Commercial Banking Business Environment Rating (CBBER), a measure that ensures we capture the latest quantitative information available. It also ensures consistency across all countries and between the inputs to the CBBER and the Insurance Business Environment Rating, which is likewise now a feature of our insurance reports. Like the Business Environment Ratings calculated by BMI for all the other industries on which it reports, the CBBER takes into account the limits of potential returns and the risks to the realisation of those returns. It is weighted 70% to the former and 30% to the latter.
The evaluation of the Limits of Potential Returns includes market elements that are specific to the banking industry of the country in question and elements that relate to that country in general. Within the 70% of the CBBER that takes into account the Limits of Potential Returns, the market elements have a 60% weighting and the country elements have a 40% weighting. The evaluation of the Risks to the Realisation of Returns also includes banking elements and country elements (specifically, BMI’s assessment of long-term country risk). However, within the 30% of the CBBER that take into account the risks, these elements are weighted 40% and 60%, respectively.
Further details on how we calculate the CBBER are provided at the end of this report. In general, though, three aspects need to be borne in mind in interpreting the CBBERs. The first is that the market elements of the Limits of Potential Returns are by far the most heavily weighted of the four elements. They account for 60% of 70% (or 42%) of the overall CBBER. Second, if the market elements are significantly higher than the country elements of the Limits of Potential Returns, it usually implies that the banking sector is (very) large and/or developed relative to the general wealth, stability and financial infrastructure in the country. Conversely, if the market elements are significantly lower than the country elements, it usually means that the banking sector is small and/or underdeveloped relative to the general wealth, stability and financial infrastructure in the country. Third, within the Risks to the Realisation of Returns category, the market elements (ie: how regulations affect the development of the sector, how regulations affect competition within it, and Moody’s Investor Services’ ratings for local currency deposits) can be markedly different from BMI’s long-term risk rating.
Table Of Contents
Executive Summary 6
Table: Levels (BDTbn) 6
Table: Levels (US$bn) 6
Table: Levels At November 2009 6
Table: Annual Growth Rate Projections 2010-2014 (%) 6
Table: Ranking Out Of 59 Countries Reviewed In 2010 7
Table: Projected Levels (BDTbn) 7
Table: Projected Levels (US$bn) 7
SWOT Analysis 8
Bangladesh Commercial Banking SWOT 8
Bangladesh Political SWOT 8
Bangladesh Economic SWOT 9
Bangladesh Business Environment SWOT 9
Business Environment Outlook 10
Commercial Banking Business Environment Rating 10
Table: Commercial Banking Business Environment Rating 10
Commercial Banking Business Environment Rating Methodology 11
Table: Asia Commercial Banking Business Environment Ratings 12
Global Commercial Banking Outlook 13
Asia Banking Sector Outlook 15
Five Themes for the Regional Banking Sector 15
Comparison Of Loan/Deposit & Loan/Asset & Loan/GDP Ratios 18
Anticipated Developments In 2010 19
Comparison Of Total Assets & Client Loans & Client Deposits (US$bn) 20
Comparison Of US$ Per Capita Deposits (Late 2009) 21
Interbank Rates & Bond Yields 22
Bangladesh Banking Sector Outlook 23
Banking Sector Stable, But Room for Improvement 23
Economic Outlook 25
Table: Bangladesh Economic Activity, 2007-2014 27
Competitive Landscape 28
Market Structure 28
Table: Protagonists In Bangladesh’s Commercial Banking Sector 28
Definition Of The Commercial Banking Universe 28
List Of Banks 28
Table: Bangladesh Association of Banks Members 28
Company Profiles 30
Sonali 30
Table: Key Statistics For Sonali Bank, 2004-2008 (BDTmn) 31
Janata Bank 32
Table: Key Statistics For Janata Bank, 2007-2008 (BDTmn) 33
Agrani Bank 34
Islami Bank Bangladesh 35
Table: Key Statistics For Islami Bank Bangladesh, 2005-2008 (BDTmn) 36
Prime Bank 37
Table: Key Statistics For Prime Bank, 2003-2008 (BDTmn) 38
Pubali Bank 39
Table: Key Statistics For Pubali Bank, 2007-9M09 (BDTmn) 40
BMI Banking Sector Methodology 41
Commercial Bank Business Environment Rating 42
Table: Commercial Banking Business Environment Indicators And Rationale 43
Table: Weighting Of Indicators 44
Executive Summary 6
Table: Levels (BDTbn) 6
Table: Levels (US$bn) 6
Table: Levels At November 2009 6
Table: Annual Growth Rate Projections 2010-2014 (%) 6
Table: Ranking Out Of 59 Countries Reviewed In 2010 7
Table: Projected Levels (BDTbn) 7
Table: Projected Levels (US$bn) 7
SWOT Analysis 8
Bangladesh Commercial Banking SWOT 8
Bangladesh Political SWOT 8
Bangladesh Economic SWOT 9
Bangladesh Business Environment SWOT 9
Business Environment Outlook 10
Commercial Banking Business Environment Rating 10
Table: Commercial Banking Business Environment Rating 10
Commercial Banking Business Environment Rating Methodology 11
Table: Asia Commercial Banking Business Environment Ratings 12
Global Commercial Banking Outlook 13
Asia Banking Sector Outlook 15
Five Themes for the Regional Banking Sector 15
Comparison Of Loan/Deposit & Loan/Asset & Loan/GDP Ratios 18
Anticipated Developments In 2010 19
Comparison Of Total Assets & Client Loans & Client Deposits (US$bn) 20
Comparison Of US$ Per Capita Deposits (Late 2009) 21
Interbank Rates & Bond Yields 22
Bangladesh Banking Sector Outlook 23
Banking Sector Stable, But Room for Improvement 23
Economic Outlook 25
Table: Bangladesh Economic Activity, 2007-2014 27
Competitive Landscape 28
Market Structure 28
Table: Protagonists In Bangladesh’s Commercial Banking Sector 28
Definition Of The Commercial Banking Universe 28
List Of Banks 28
Table: Bangladesh Association of Banks Members 28
Company Profiles 30
Sonali 30
Table: Key Statistics For Sonali Bank, 2004-2008 (BDTmn) 31
Janata Bank 32
Table: Key Statistics For Janata Bank, 2007-2008 (BDTmn) 33
Agrani Bank 34
Islami Bank Bangladesh 35
Table: Key Statistics For Islami Bank Bangladesh, 2005-2008 (BDTmn) 36
Prime Bank 37
Table: Key Statistics For Prime Bank, 2003-2008 (BDTmn) 38
Pubali Bank 39
Table: Key Statistics For Pubali Bank, 2007-9M09 (BDTmn) 40
BMI Banking Sector Methodology 41
Commercial Bank Business Environment Rating 42
Table: Commercial Banking Business Environment Indicators And Rationale 43
Table: Weighting Of Indicators 44
