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DHAKA, Jan 26, 2026 (BSS) - In a significant move to ensure financial stability and sustainable economic growth, stakeholders have formed a joint committee to develop a resilient bond market in Bangladesh, aiming to reduce the corporate sector's excessive reliance on bank loans.

Following the directive of the Chief Adviser, a collaborative effort involving Bangladesh Bank (BB), the Ministry of Finance, and the Bangladesh Securities and Exchange Commission (BSEC) has been launched to guide large companies toward raising long-term capital through bonds and shares rather than traditional bank borrowing, said a BB press release.

Despite the important role of a bond market in inclusive development, Bangladesh remains significantly behind its developing peer economies in this sector. 

Currently, both corporate and public sectors rely heavily on bank financing for medium to long-term needs.

Experts noted that existing bond issuance systems are not market-friendly, prompting corporate entities to prefer easily accessible bank loans over entering the capital market.

To address these issues, an eight-member joint committee was formed, comprising high-ranking officials including Dr. Md. Ezazul Islam (Director General, BIBM), along with directors and deputy secretaries from the central bank, the BSEC, and the Ministry of Finance.

Under the supervision of Bangladesh Bank, the committee has prepared a concept note analyzing the market's demand and supply, regulatory framework, and macroeconomic factors. 

The note identifies several critical challenges hindering market growth including high costs and structural issues, financial constraints and investor sentiment.

The concept note includes a comprehensive action plan to tackle these challenges. The report emphasizes that shifting toward capital market financing is essential for the country's transition to a middle-income economy and for ensuring sustainable economic development.