Bangladesh Bank Training Academy Journal

Abstract: "This paper investigates the link of nonconventional factors like regulationquality, business environment, political stability, and rule of law with the bank performance in Bangladesh for the period of 2000-2023. The analysis relies on Vector Autoregressive (VAR) model, Granger causality test and Impulse Response Function (IRF) to determine the impact of this four variables on the business performance of banks in Bangladesh. The finding shows that improvement in regulatory quality, political stability, and business environment significantly reduce Non-performing Loan (NPL) leading to better banking performance. Improvement in the rule of law does not have any immediate impact on NPL. It may be due to stricter enforcement of law forces the banks to acknowledge and report more bad loans. However, rule of law is seen as beneficial for the long-term stability because it promotes a more transparent and accountable system. The study concludes that persistent political stability, improved business environment, and higher regulation quality are essential for enhanced banking performance. So it is recommended that harmonized reforms, continuous monitoring, and capacity building for the relevant institutions are necessary so that the availability of these three social pillars of bank performance is ensured."

Citation: Kashem, M.A. (2026). Impact of Social Factors on Bank Performance: Evidence from Bangladesh. Thoughts on Banking and Finance, 11(1), 1–23. https://doi.org/10.64968/bbta.tbf.2026.11.01.01

Abstract: Prudent management of money supply is considered as a key factor in smoothing macroeconomic stability. The better performance of monetary policy lies in attaining optimum management of money supply and stability in price level. As money supply plays key role in macroeconomic stability, the current paper attempt to explore the dynamic relationships between the money supply and its major determinants in Bangladesh. It applies the Autoregressive Distributed Lag (ARDL) model to assess the degree of influence of various factors on the money supply in Bangladesh using monthly data from 2008M1 to 2024M12. The findings indicate that the reserve money and the reserve-deposit ratio are the major contributors influencing the money supply in Bangladesh. In addition, currency-deposit ratio, excess reserve-deposit ratio, deposit rate, and exchange rate also affect the money supply. Since these factors have impacts over the money supply, the conduct of prudent monetary policy in Bangladesh will depend crucially on considering the implications of changes in those key factors.

Citation: Nabi, M. G., Sarder, M. W., Sumon, S. M., & Mahmud, M.A. (2026).Determinants of Money Supply in Bangladesh: An Empirical Investi gation. Thoughts on Banking and Finance, 11(1), 24–39. https://doi.org/10.64968/bbta.tbf.2026.11.01.02

Abstract: This study examines the impact of post-pandemic stimulus packages on women entrepreneurs in cottage, micro, small and medium enterprises in Bangladesh. The study shows that, despite the implementation by the Government of Bangladesh and Bangladesh Bank of well-designed policies with preferential terms for women, the stimulus package’s effectiveness was severely hampered by persistent structural and sociocultural barriers and a lack of gender-sensitive implementation. Access to and outcomes of the loans remain inequitable for women entrepreneurs, and the pandemic adversely affected women more than it did men. Key issues faced by women were lack of publicity about the packages; gender-based obstacles in dealing with banks and financial institutions; lack of formal economic rights; gendered societal roles; lack of access to digital knowledge; inadequate business skills; and limited networks. The study suggests more inclusive support mechanisms. The main policy recommendation is for the development and use of gender-sensitive financial instruments that recognize the power dynamics in gender relations.

Citation: homa, C. D. (2026). The Gendering of Entrepreneurial Finance: Evidence from Post Pandemic Stimulus Packages to Cottage, Micro, Small and Medium Enterprises in Bangladesh. Thoughts on Banking and Finance, 11(1), 40–54. https://doi.org/10.64968/bbta.tbf.2026.11.01.03

Abstract: The study empirically examines the macroeconomic determinants of Foreign Exchange Reserve (FER) in Bangladesh using Auto Regressive Distributed Lag (ARDL) Model by using the data for the period of 1980 to 2024. Prior to estimation, the stationarity properties of the variables are examined using Augmented Dickey-Fuller (ADF), Phillips-Perron (PP) and KPSS tests. The results indicate that the variables are integrated of order I (0), I (1), or a mixture of both, with no evidence of I (2) behavior, thereby supporting the use of the ARDL framework. The bounds test confirms the presence of a long-run relationship among Foreign Exchange Reserves (FER), Personal Remittances (PR), Foreign Direct Investment (FDI), Foreign Loans and Grants (FLG), and the Current Account Balance (CAB). The long-run estimates show that foreign loans and grants and the current account balance are positively and significantly associated with Bangladesh’s foreign exchange reserves. By contrast, personal remittances and foreign direct investment show positive but statistically insignificant long-run coefficients in the preferred specification. The error correction term is negative and statistically significant, indicating adjustment toward long-run equilibrium after short-run deviations. Diagnostic and stability tests suggest that the model is free from serial correlation, heteroskedasticity and major functional-form problems, and remains stable over the sample period. The findings suggest that strengthening the current account position and reducing excessive reliance on debt-creating inflows are important for sustainable reserve management in Bangladesh.

Citation: Imtiaz, M.M. (2026). Macroeconomic Determinants of Foreign Exchange Reserves in Bangladesh: Evidence from the ARDL Bounds Testing Approach. Thoughts on Banking and Finance, 11(1), 55–71. https://doi.org/10.64968/bbta.tbf.2026.11.01.04

Abstract: This study investigates the impact of the BRAC CFPR/TUP program, which is a credit-plus social protection program to reduce multidimensional poverty among ultra-poor women in rural Bangladesh. The qualitative study includes twenty-five in-depth interviews of women in Jamalpur district analyzed thematically to investigate program outcomes, vulnerabilities, coping strategies, and lived experience. Findings indicate that due to low repayment capacity, the structural constraints like asset deprivation, social exclusion, food insecurity, and high exposure to shocks constrain the effectiveness of traditional microfinance for ultra-poor households. On the other hand, The Challenging the Frontiers of Poverty Reduction (CFPR) and Targeting the Ultra poor (TUP) program has high positive impacts, the so-called graduation approach that empowers women, builds their resilience and social reintegration, and improves their livelihood security, though challenges persist with reaching the most marginalized and economically inactive groups who need long-term support. The study finds that integrated, capability-focused interventions do better than stand-alone financial services and that scaling up such programs requires stronger institutional coordination and policy support.

Citation: Akhter, R. (2026). Credit-Plus Interventions and Livelihood Transformation: A Qual itative Analysis of Ultra-Poor Women in Rural Bangladesh under BRAC’s CFPR/TUP Program. Thoughts on Banking and Finance, 11(1), 72–95. https://doi.org/10.64968/bbta.tbf.2026.11.01.05

Abstract: T¨urkiye and Bangladesh are both Muslim Majority countries. In both countries, Islamic Banking is growing fast. The proportion of Islamic banking of overall banking in T¨urkiye is less than that of Bangladesh. This study evaluates institutional and banking practices of the two markets through a comparative case study of respective market leaders- Kuveyt T¨urk Participation Bank and Islami Bank Bangladesh PLC. The analysis compares ownership structure, Shariah governance, balance sheet composition, Islamic financing modes, and selected financial performance indicators using data of both banks for 2017, 2022, and 2025. The findings reveal notable institutional and operational differences between the two banks. Kuveyt T¨urk maintained a more liquidity-oriented balance sheet, lower non-performing investment ratios, and stronger profitability, whereas Islami Bank Bangladesh allocated a larger share of its assets to financing activities but experienced significant deterioration in asset quality and profitability by 2025 following governance changes.

Citation: Masud, A. A. (2025). Islamic Banking in T¨urkiye and Bangladesh: A Comparative Case Study of Institutional and Banking Practices in the Largest Islamic Banks. Thoughts on Banking and Finance, 11(1), 96–114. https://doi.org/10.64968/bbta.tbf.2026.11.01.06