Asset Backed Securitization in Bangladesh: Prospects and Hindrances
Journal of Banking & Financial Services, Vol. 3, No. 1, July 2009, University of Dhaka, Bangladesh
22 Pages Posted: 4 Dec 2009 Last revised: 2 Jul 2011
Date Written: December 2, 2009
Abstract
Structured finance covers all advanced financial arrangements that serve to refinance and hedge any profitable asset efficiently beyond the scope of conventional forms of on-balance sheet securities to lower cost of capital, to mitigate agency costs of market impediments on liquidity and to bypass regulatory requirement. Asset Backed securities (ABS), leading form of structured finance, is growing rapidly in developed country as well as developing country. In Bangladesh, it is first issued privately by Industrial Promotion and Development Company (IPDC) in November, 2004. But so far the development of this potential sector is impeded. Basic reasons for the impediment are unsophisticated debt market for government and corporate bond, lack of legislation, capacity lacking of related parties. Some other problems like tax incentive, tax neutrality among all fixed income securities etc. are not very profound. Furnishing dynamic securitization act, mobilizing the formal debt market, market, strengthen the primary dealer network, acting market maker role by government etc. can pull up the ABS market with wide variety of prospects.
Keywords: Asset Backed Securities, Securitization, Special Purpose Entity, Pass Through Securitization, Originator
Suggested Citation: Suggested Citation
Here is the Coronavirus
related research on SSRN
Recommended Papers
-
Securitization: The Tool of Financial Transformation
By Frank J. Fabozzi and Vinod Kothari
-
The Importance of Being Mature: The Effect of Demographic Maturation on Global Per-Capita Income
-
The Importance of Being Mature: the Effect of Demographic Maturation on Global Per-Capita Gdp
-
Structured Finance and the Financial Turmoil of 2007-2008: An Introductory Overview
By Sarai Criado and Adrian Van Rixtel
-
South Asia Bond Markets South Aisa Bond Markets: Bangladesh
By Yibin Mu
-
China's Approach to Rebalancing: A Conceptual and Policy Framework
By Luke Deer and Ligang Song
-
Structured Finance: Is Bangladesh Lagging Behind?
By Tahmina Akhter and Hashibul Hassan
-
The Current Financial Crisis and Lessons Which can be Gained
-
Epidemics of Rules, Information Aggregation Failure and Market Crashes
By Matteo Marsili, Alan Kirman, ...
-
Demographic Origins of the Great Recession: Implications for China
By Rafael Gomez and Danielle Lamb
