Volume 7, Issue 4, August 2014, Pages 1274–1291
Mashrufah Khatun1, Muhammad Shahrukh Rahman2, Md. Rais Uddin Mian3, Subarna Kundu4, and Farzana Akter5
1 Lecturer, Bangladesh Agricultural University, Mymensingh, Bangladesh
2 Scientific Officer, Bangladesh Agricultural Research Institute, Gazipur, Bangladesh
3 Associate Professor, Bangladesh Agricultural University, Mymensingh, Bangladesh
4 Scientific Officer, Bangladesh Agricultural Research Institute, Gazipur, Bangladesh
5 Scientific Officer, Bangladesh Agricultural Research Institute, Gazipur, Bangladesh
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
The present study aims at investigating into the existing financial market for agriculture in some selected areas of Bangladesh. The sample was comprised of 27 Public and Private Sector Institutions (PPSIs), 21 Member Based Institutions (MBIs) and a set of 50 Informal Financial Intermediaries (IFIs) comprising 10 intermediaries each from moneylenders, well-to-do people, shopkeepers, businessmen, and friends and relatives. The sample was selected through purposive sampling technique. The specific objectives of this study are to examine the structure of financial market for agriculture including lending policies, loan transactions, interest rate, recovery, efficiency, linkages among the lending institutions. Both descriptive and tabular analysis was employed to achieve the objectives of the study. The study reveals that several components constituted the structure of financial market in the study area. Considerable differences existed in lending policies between PPSIs and MBIs. The average annual credit disbursement of all PPSIs was Tk 332.63 lac while it was Tk 4036.20 lac for MBIs. IFIs' average annual disbursement was Tk 16.466 lac. Share of PPSIs to the lending was 92 percent. The PPSIs interest rate varied between 8 to 11.50 per cent and those of MBIs between 14 to 20 percent. IFIs' interest rate varied from 10 to 100 per cent. MBIs have highest recovery (98 percent). PPSIs could recover only 60 per cent of their loan. MBIs are more efficient than other financial intermediaries. Linkages among the different financial intermediaries are noticeable.
Author Keywords: Financial Market, credit, interest rate, collaboration, efficiency, linkages.
Mashrufah Khatun1, Muhammad Shahrukh Rahman2, Md. Rais Uddin Mian3, Subarna Kundu4, and Farzana Akter5
1 Lecturer, Bangladesh Agricultural University, Mymensingh, Bangladesh
2 Scientific Officer, Bangladesh Agricultural Research Institute, Gazipur, Bangladesh
3 Associate Professor, Bangladesh Agricultural University, Mymensingh, Bangladesh
4 Scientific Officer, Bangladesh Agricultural Research Institute, Gazipur, Bangladesh
5 Scientific Officer, Bangladesh Agricultural Research Institute, Gazipur, Bangladesh
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
The present study aims at investigating into the existing financial market for agriculture in some selected areas of Bangladesh. The sample was comprised of 27 Public and Private Sector Institutions (PPSIs), 21 Member Based Institutions (MBIs) and a set of 50 Informal Financial Intermediaries (IFIs) comprising 10 intermediaries each from moneylenders, well-to-do people, shopkeepers, businessmen, and friends and relatives. The sample was selected through purposive sampling technique. The specific objectives of this study are to examine the structure of financial market for agriculture including lending policies, loan transactions, interest rate, recovery, efficiency, linkages among the lending institutions. Both descriptive and tabular analysis was employed to achieve the objectives of the study. The study reveals that several components constituted the structure of financial market in the study area. Considerable differences existed in lending policies between PPSIs and MBIs. The average annual credit disbursement of all PPSIs was Tk 332.63 lac while it was Tk 4036.20 lac for MBIs. IFIs' average annual disbursement was Tk 16.466 lac. Share of PPSIs to the lending was 92 percent. The PPSIs interest rate varied between 8 to 11.50 per cent and those of MBIs between 14 to 20 percent. IFIs' interest rate varied from 10 to 100 per cent. MBIs have highest recovery (98 percent). PPSIs could recover only 60 per cent of their loan. MBIs are more efficient than other financial intermediaries. Linkages among the different financial intermediaries are noticeable.
Author Keywords: Financial Market, credit, interest rate, collaboration, efficiency, linkages.
How to Cite this Article
Mashrufah Khatun, Muhammad Shahrukh Rahman, Md. Rais Uddin Mian, Subarna Kundu, and Farzana Akter, “Assessment of Financial Market for Agriculture in Bangladesh,” International Journal of Innovation and Applied Studies, vol. 7, no. 4, pp. 1274–1291, August 2014.
