The International Journal of Banking and Finance (Mar 2012)

Interest Rate Convergence in Bangladesh

  • Dewan M. Rahman,
  • Kohinur Akter

Journal volume & issue
Vol. 9, no. 1

Abstract

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Financial liberalization, a widely-accepted policy paradigm since the 1980s, aims to remove financial repression and thus establish an efficient financial sector as a pre-requisite for financial development. Interest rate convergence is one of the obvious outcomes of the interest rate liberalization, a crucial part of financial liberalization. Uniformity of interest rate should be there in a free and competitive financial market. This paper examines the state of interest rate convergence by measuring the degree of convergence in the financial market of Bangladesh, a success case of financial liberalization initiated in the 1990s.

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