Present Condition & Contribution of SME Financing in the Economy of Bangladesh: A Study on Three Selected Banks

S.M. Akber^1, , Shaila Shabnam² and Aditi Roy¹

¹Department of Business Administration, R. P. Shaha University, Narayanganj, Bangladesh

²Department of Cash Management, IFIC Bank Limited, Khulna, Bangladesh

Cite this paper:
S.M. Akber, Shaila Shabnam and Aditi Roy. Present Condition & Contribution of SME Financing in the Economy of Bangladesh: A Study on Three Selected Banks. Journal of Finance and Economics. 2023; 11(4):182-194. doi: 10.12691/jfe-11-4-1

Abstract

Small and medium-sized businesses, or SMEs, are often capital-light and labour-intensive sectors of the Economy. SMEs have a natural comparative advantage in a country like Bangladesh, where labour and capital are cheap. This industry significantly contributes to economic growth, creating jobs and eradicating poverty in Bangladesh. The study will break down the SME banking activities of three different chosen banks: Brac Bank, DBBL, and Dhaka Bank, all private banks. The financial statements and websites of the individual banks were the sources of all the information and data. In this study, SME expenses from several banks were grouped into a unified structure but presented in various ways. The study aims to comprehend SME operations, loan disbursement, and net profitability of individual banks over five years. It decides which sector they prioritize, which banks are spending more, and their expenses with time. It also aims to identify which banks are providing priority to which sectors. This paper presents all the information and data graphically and in tabular form so the reader can fully understand the issue.

Keywords:
small and medium enterprises (SME) loan disbursement net profitability and labor-intensive sectors

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