Strategic analysis of a Non Banking Financial Institution
Abstract: In the context of Bangladesh, the development of Small and Medium Enterprises (SMEs) can be considered as a vital instrument for poverty alleviation and ensure the rapid industrialization. A series of incentives are being considered by central bank to boost this sector and to encourage financial institutions to start leasing in bigger scale for SME. Financial institutes in Bangladesh consist of National Banks, Commercial Banks, Non-Bank Financial Institutions etc. Non-Bank Financial Institutions (NBFIs) in Bangladesh are gaining increased popularity in recent times. Though the major business of most NBFIs is leasing some are also diversifying into other lines of business like term lending, housing finance, merchant banking, equity financing and venture capital financing. The purpose of this paper is to highlight SME financing of one of the leading NBFIs - ULCL, the strategies they have taken for better operation in SME sector with their particular strength as well as recommendations.
Abstract: In the context of Bangladesh, the development of Small and Medium Enterprises (SMEs) can be considered as a vital instrument for poverty alleviation and ensure the rapid industrialization. A series of incentives are being considered by central bank to boost this sector and to encourage financial institutions to start leasing in bigger scale for SME. Financial institutes in Bangladesh consist of National Banks, Commercial Banks, Non-Bank Financial Institutions etc. Non-Bank Financial Institutions (NBFIs) in Bangladesh are gaining increased popularity in recent times. Though the major business of most NBFIs is leasing some are also diversifying into other lines of business like term lending, housing finance, merchant banking, equity financing and venture capital financing. The purpose of this paper is to highlight SME financing of one of the leading NBFIs - ULCL, the strategies they have taken for better operation in SME sector with their particular strength as well as recommendations.