Monthly Archives - March 2017

bKash – Opportunities and challenges

bKash is the first MFS provider to attain economies of scale in Bangladesh (basically a Type I market – low income, low banking rate). bKash has been the first MFS provider in reaching out the under-banked and unbanked segment of Bangladeshi population at a very cheap, convenient and reliable way. bKash’s value proposition is simple: a safe, convenient place to store money; a safe, easy way to make payments and money transfers. Through cutting off agent’s chores and by enhancing [...]

Why are Bangladesh based entrepreneurs not coming to equity market?

Entrepreneurs, established entrepreneurs do have funding needs; they will need external funding for financing acquisitions, expansions or extracting value from real options. Equity market is a popular financial intermediation medium available to entrepreneurs. The biggest and most successful entrepreneurs in the country are yet to find the capital market a lucrative source of financing for their companies that they built over the years. Take, for instance, the case of Meghna Group of Industries, which is one of the biggest conglomerates [...]

The world of Schumpeter

Joseph Schumpeter synchronized capitalism with a process of evolution in his very popular book ‘Capitalism, Socialism and Democracy’. Economic change was considered as the only stationary variable when Schumpeter described the evolutionary feature of the capitalist economy. This evolution process of capitalism is holistic and should not be evaluated on a real time basis. The evolutionary nature of capitalism is not merely due to the changes in the natural and social environment (war, revolutions and so on); due to the [...]

Operational problem while using Taylor’s rule for targeting interest

Taylor rule is very straightway; it is intuitive and it provides an easier way to understand the interest rate dynamics to the general mass, to the policy makers and to the participants in the financial market territory. But while using Taylor rule into practice there had been numerous instances where the operational maladies create puzzling equation for the researcher while proceeding. The way the equation data is filled in the equation often presents complicated problems for the researcher using [...]