Financing Pattern of the Industrial Sector by the Scheduled Banks: A Longitudinal Study

Abstract

During the last few years, Bangladesh has been experiencing what we usually know as structural transformation-the popular economic cliché. Though little in magnitude, industrial contribution to the national GDP has been gaining in importance. Banking system in Bangladesh has gone through many extensive changes in the lapse of time. It has been fashioned by economic as well as political philosophies. It has been marked by Nationalization first. Afterwards it has been deregulated but with less degree of market orientation. Restrictive regulations had made the major portion of the banking system virtually spoon-fed. Later on, financial liberalization, prudential and information regulation has set the trail ready for market based orientation. Consequently, lending norms and practices have gone through changing pattern alike. This paper tries to capture the changing structure of the credit flows by the scheduled banks in the industrial sector.