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 CMDP 2 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 CMDP 3 is enhancing the sustainability of structural reforms under the CMDP 2 by deepening and broadening the outreach of the second program reforms.