Page 23 - Banking Finance May 2022

COVER STORY

TRANSFORMATION

EFFORTS OF THE

BANKING INDUSTRY

OF BANGLADESH IN

THE NEW NORMAL

T he impact of the Covid-19 crisis created industry of Bangladesh, it might be labeled as a very good

example of a 'universal banking approach' and thus the
foundation for the transformation and
associated level of expectations from the industry have made
restructuring of the banking industry. Historically,
economic and financial crises challenged
in this critical situation. As in most global economies, the
traditional business models which appear to be even more strategic and operational adjustment even more complex
relevant during new normal. The evolving and changing circumstances demand transformation and restructuring in
business and economic environment necessitate adjusting the banking industry of Bangladesh where reviewing existing
and transforming business and operating models of the approaches, technology adoption, capacity development,
banking and financial institutions. Covid-19 responses and newer risks, and supportive policy and regulatory
sustainability are crucial in a fast-moving developing country environment seem to have a remarkable role. The feature
like Bangladesh where the economic activities and the is about understanding the emergence and capturing
businesses have notable dependence on the banking industry information on the transformation and restructuring efforts
for almost all types of financing. in the banking industry of Bangladesh for coping with Covid-
19 changes and ensuring sustainable operation in the new
Considering the range of activities pursued by the banking normal.

Covid-19 severely affected Bangladesh's real sector which
About the author has notable implications for the financial sector of the

Prof. Shah Md Ahsan Habib country. Not different from most other global economies,
PhD, Bangladesh Institute of Bank banking sector of Bangladesh was affected from the very
Management (BIBM) first wave of the pandemic. Regular banking activities and
Dhaka, Bangladesh deposits shrunk, and banks reflect over conscious approach

BANKING FINANCE | MAY | 2022 | 23