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The capital market of Bangladesh experienced two major crashes and they both reminded the stakeholders of how defenseless the market was. Both 1996 and 2010 market crashes commenced with supersonic bullish run that eventually burst after sometime with significant drops in market indices. Even though the literal impacts of these crashes were same; market structure in 1996 and 2010 vary substantially. During 1996 the primitive market structure like manual ordering and settlement, Delivery Versus Payment (DVP) system, non-existence of central depository, paper share, existence of kerb Market…mehr

Produktbeschreibung
The capital market of Bangladesh experienced two major crashes and they both reminded the stakeholders of how defenseless the market was. Both 1996 and 2010 market crashes commenced with supersonic bullish run that eventually burst after sometime with significant drops in market indices. Even though the literal impacts of these crashes were same; market structure in 1996 and 2010 vary substantially. During 1996 the primitive market structure like manual ordering and settlement, Delivery Versus Payment (DVP) system, non-existence of central depository, paper share, existence of kerb Market contributed to make the market upset. In contrast, piled up excess liquidity in banking sector as a sequence of global turmoil and domestic macroeconomic imbalances, policy debate at the government and regulators level opened up the way of market unrest despite relatively mature market structure in 2010. On the ground of factual findings, it can be summarized that exact nature of these two collapses is not precisely same in terms of extent of fall and time to recover!
Autorenporträt
Md Mizanoor Rahman is an Asst. Prof. of Finance & Banking at the Bangladesh Open University and a regular writer of post-editorials in The Financial Express. Co-authors: Qazi Musaddeq Ahmad and Md. Farjad Siddiqui are Research Analysts in the finance field.