Growth of Non Bank Financial Institutions over Time and Contribution to Economy: Evidence from Bangladesh. Instead of Present one
Non-banking financial companies, or NBFIs, are the financial institutions that provide financial services including banking but do not hold a banking license. These institutions are not allowed to take deposits from the public. The development of non-bank financial institution as financial intermediaries complementary to commercial banks is noticeable in Bangladesh. Started in 1981, the size of the nonbanking sector has been increased in both absolute and relative terms. However, the research on the sector remains substantially insignificant. Most importantly, growth of the non-banking industry and its contribution in the economic development have been a lacking in the available existing literature. Keeping this in mind, this paper aims at addressing the growth of the industry and its change over time by adopting growth measures based on asset, loan, income and expenditure figures with a sample period of 11 years from 2000-2010. The study reveals a positive growth of NBFIs over the years in advances, income, assets and others financial aspect and a good contribution in the GDP growth of Bangladesh
