Capital Market Development in Bangladesh: A Sector Reform Perspective

Publication | October 2016

Bangladesh has made significant strides toward strengthening capital markets through a strong partnership with ADB.

This paper presents a summary of reforms in the capital markets undertaken by the Government of Bangladesh with a view to highlighting key results. Reforms have been rolled out and the market is building confidence as policies and regulatory incentives under the Second Capital Market Development Program (CMDP2) and the ongoing Third Capital Market Development Program (CMDP3) gain traction.

The CMDP2 addressed structural deficiencies in Bangladesh’s capital markets by boosting economic growth and deregulating the financial system to better support the real economy by promoting private sector investment. Developing stable, resilient financial markets is not a goal on its own but rather a process that can support development and growth in an economy. The ongoing CMDP3 is enhancing the sustainability of structural reforms under the CMDP2 by deepening and broadening the outreach of the second program reforms.


  • Introduction
  • Stock Market Debacle of 2010
  • Growth Imperative and Infrastructure Challenge
  • Government Policy Support for Capital Market Development 
  • ADB Support for Capital Market Development
  • Lessons Learned
  • Capital Market Indicators
  • What's Next
  • Conclusion

Additional Details

  • Finance sector development
  • Finance sector reform
  • Financial markets and institutions
  • Bangladesh
  • 20
  • WPS168465-2

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