Abstract
Economic growth is the single most contributory matter in the economic development process. Behind the satisfactory growth rate, the financial system of Bangladesh has contributed. In the economic growth of a country, the banking sector plays a significant role (Alam et al., 2021). In the decade of the 1980s, the banking sector started to contribute under private ownership and Bangladesh watched economic progress from the median of the decade. The simultaneity of phenomena implies that the development of banking sector under private ownership promotes economic growth (supply-leading hypothesis) while the acceleration of economic growth necessitates the development of private banking sector (demand-following hypothesis). Hence, the study aims at the detection of supply-leading or demand-following hypothesis regarding the relation between the functions of private commercial banks (PCBs) and economic growth in Bangladesh. The study has applied the Granger causality test to detect the hypothesis. The development of PCBs and economic growth reinforce each other. To develop the PCBs, recent irregularities should be eradicated. To develop the economy, all the impediments of real sectors should be addressed.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Risk Governance and Control: Financial Markets & Institutions
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
