BD missing from global capital market dialogue: Farashuddin

Staff Reporter :

Bangladesh remains largely absent from international conversations on capital markets and investment, former Bangladesh Bank governor Mohammed Farashuddin said on Sunday.

Speaking as the chief guest at the award ceremony of NeXTor 2.0-an inter-university real-time capital market competition held at East West University-Farashuddin noted that while stock markets in cities such as Karachi, Lahore, Mumbai, Bangkok, Colombo, and even Bhutan regularly feature in regional and global discussions, Bangladesh’s capital market is rarely mentioned.
The competition was organised by the East West University Investment and Finance Club.

Farashuddin said a critical issue facing the country is understanding why domestic savings continue to flow into the banking sector-despite widespread stress in banks-instead of being channelled into the stock market. Referring to the long evolution of Bangladesh’s capital market, he said that over nearly seven decades, beginning under the East Bengal government and later under Bangladesh, multiple initiatives were undertaken to strengthen the Dhaka and Chattogram stock exchanges. However, despite these efforts, the country’s stock market has largely failed to attract the attention of the international financial and investment community.

He also pointed out that the concentration of a significant portion of national wealth in the hands of a small group contradicts the ideals of the Liberation War and the spirit of the recent mass movement, underscoring the growing importance of a credible capital market.

Recalling the establishment of the Central Depository System (CDS) in 2000, Farashuddin said political interference and a lack of confidence caused the initiative to collapse prematurely, delivering a serious blow to investor trust.

According to him, the most significant failure has been the inability to ensure independent, honest, and courageous leadership in the governance of stock exchanges and the broader capital market. Instead, individuals with questionable backgrounds were allowed influence, further eroding confidence.

Drawing comparisons with neighbouring countries, he said they appoint competent and independent directors with attractive remuneration, enabling them to take informed, bold, and timely decisions. Bangladesh, he added, has yet to demonstrate such firm commitment from both the government and the corporate sector.

Despite the challenges, Farashuddin expressed optimism that the Dhaka and Chattogram stock exchanges would eventually regain public confidence.

“When that happens, people will invest their surplus savings in the capital market, and foreign investors will also feel confident about doing business in Bangladesh,” he said.

The competition saw participation from more than 260 teams and over 750 students representing more than 30 universities across the country.

Bangladesh University of Professionals’ Team FMV clinched the championship, while Team NSUERS from the Department of Accounting and Finance of North South University finished as first runners-up. East West University’s Team Singularity secured the second runners-up position. The total prize money for the contest was Tk205,000.

Acting Pro Vice-Chancellor of East West University Professor Dr Mohammad Ashik Mosaddik was present at the event. Mamun Rashid, chairman of Financial Excellence Limited and former Citibank Bangladesh chief, attended as a special guest.