Market Insights Financial Banking Traditional Banks

Traditional Commercial Banking - Bangladesh

Bangladesh

In Bangladesh, the Traditional Commercial Banking market market is anticipated to witness a significant increase in Net Interest Income, projected to reach US$36.02bn in 2024.
This indicates a positive growth trajectory for the country's banking sector.
Moreover, it is expected that the Net Interest Income will continue to expand at a Compound Annual Growth Rate (CAGR) of 5.55% between 2024 and 2029.
By the end of this period, the market volume is estimated to reach US$47.19bn, showcasing the country's potential for further financial growth.
It is noteworthy to mention that in a global context, China is expected to generate the highest Net Interest Income, reaching a staggering US$1,444.0bn in 2024.
This demonstrates the significant contribution of the Chinese banking sector to the global market.
Despite the growing digital banking landscape, traditional commercial banking remains a dominant force in Bangladesh's financial market.

Key regions: China, France, Brazil, Singapore, India

Definition:

Commercial banking refers to the financial services sector that provides a range of financial products and services to businesses, including small and large enterprises. Commercial banks offer services such as loans, lines of credit, and other financial products specifically designed for businesses. These services are critical to supporting the growth and development of businesses and the broader economy.
Commercial banks play a key role in the financial landscape by providing businesses with the funding they need to invest in new projects, hire employees, and expand their operations. They also offer a range of risk management services, such as trade financing and hedging solutions, to help businesses manage their financial risks.
The commercial banking market is highly competitive, with large global players as well as regional and local banks competing for business. Banks in this market are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Changes in regulations and the growing trend towards digitalization are also shaping the commercial banking market, creating opportunities for new entrants and forcing existing players to adapt.
Overall, commercial banking provides a vital range of financial services to businesses and is critical to supporting the growth and development of the broader economy.

Structure:

The market data comprises Net Interest Income, the value of Deposits, the value of Loans, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Additional information:

The Banking market is highly competitive and characterized by the presence of large global players as well as regional and local banks. Banks are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Additionally, changes in regulations and the growing trend toward digitalization are shaping the retail and commercial banking market, creating opportunities for new entrants and forcing existing players to adapt.

Key players in this market are companies such as Industrial and Commercial Bank of China Ltd., JPMorgan Chase & Co., and HSBC Holdings.

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Analyst Opinion

The Traditional Commercial Banking market in Bangladesh is experiencing significant growth and development in recent years.

Customer preferences: Customers in the Traditional Commercial Banking market in Bangladesh are increasingly seeking more personalized and convenient banking services. They are looking for a seamless banking experience that integrates digital solutions with traditional banking services.

Trends in the market: One of the key trends in the Traditional Commercial Banking market in Bangladesh is the rapid adoption of digital banking services. Banks are investing heavily in technology to offer online and mobile banking solutions to meet the changing needs of customers. Additionally, there is a growing trend towards sustainable banking practices in the country, with banks focusing on environmental and social responsibility.

Local special circumstances: Bangladesh has a large population with a significant portion of unbanked individuals, presenting a unique opportunity for banks to expand their customer base. The government's initiatives to promote financial inclusion and improve access to banking services have also contributed to the growth of the Traditional Commercial Banking market in the country.

Underlying macroeconomic factors: The stable economic growth and increasing per capita income in Bangladesh have boosted consumer confidence and spending power, leading to a higher demand for banking services. Additionally, regulatory reforms and policies aimed at strengthening the banking sector have created a more competitive environment, encouraging innovation and growth in the Traditional Commercial Banking market.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on Net Interest Income, Bank Account Penetration rate, the value of Deposits, the number of depositors, the value of Loans, the number of borrowers, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data provided by the IMF, World Bank and the annual reports of the top 1000 Banks by asset size. Next we use relevant key market indicators and data from country-specific associations such as GDP, deposit interest rates, lending interest rates or bank account penetration rates. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function and exponential trend smoothing are well suited to forecast financial services for digital as well as traditional products and services.

Additional Notes:

The market is updated twice per year in case market dynamics change.