The Government of India recently announced reduction of corporate income tax rates. The highlights of the announced measures are: * Reduction of tax rates for firms that do not seek any exemptions from 30 per cent to 22 per cent. * For firms receiving incentives/exemptions, rates would be reduced
Prudential regulations provide the framework for ensuring stability and soundness of the banking system. "Asymmetry of information" and "Moral hazard" are inescapable features of the banking system. These features find expression in multiple ways. There is asymmetry of information between deposito
A central bank is the term often used to describe the authority responsible for policies that affect a country's supply of money and credit. It has become a symbol of a country's sovereignty in the arena of money and finance. The central bank, in one form or another, has a long history. It dates b
In recent times loan default has emerged as a topic of frequent discussions both in academic circles and the media. The issue is of great importance in view of the dominant role of the banking system in financing investment in the real sector in Bangladesh. The capital market has not yet reached a
Public policy analysis is inextricably connected with the role of the government in an economy. A standard textbook on economics notes that "markets produce the most efficient bundle of outputs using the most efficient techniques and the minimum of inputs". This result is predicated on the assumpti
Bangladesh Bank is expected to announce its monetary policy statement (MPS) for the first half (H1) of fiscal year 2017-18 (FY1 18). I argued in the past that the effectiveness of monetary policy in Bangladesh is undermined by a number of structural characteristics of the financial system as well a
The focus on acceleration of growth, specifically growth of gross domestic product (GDP), has come under serious attack by many eminent economists as well as politicians and civil society organisations. The attack has been triggered by the rising inequality of income and wealth, particularly in dev
Media reports indicate that the Finance Minister is once again going to propose an ambitious budget for the Fiscal Year 2016-17 (FY 17). I have genuine sympathy for the Finance Minister's desire. The reason is that central government expenditure as proportion of gross domestic product (GDP)
