American Journal of Economics, Finance and Management
Articles Information
American Journal of Economics, Finance and Management, Vol.4, No.3, Sep. 2018, Pub. Date: Sep. 4, 2018
Role of Banks in Funding Agro Based Organization: A Study on Some Selected Commercial Banks in Bangladesh
Pages: 98-110 Views: 915 Downloads: 327
Authors
[01] Md. Masudul Hassan, Department of Agribusiness, Atish Dipankar University of Science & Technology (ADUST), Dhaka, Bangladesh.
[02] Noor Nahar Begum, Faculty of Business Studies, Bangladesh University of Professionals (BUP), Dhaka, Bangladesh.
[03] Samira Islam Resmi, Department of Agribusiness, Atish Dipankar University of Science & Technology (ADUST), Dhaka, Bangladesh.
Abstract
The rapid advances that are occurring in the areas of information, telecommunication and transportation technologies are further accelerating this phenomenon of globalization. Globalization will also affect national economies, including the Agro based Organization and its various activities. Commercial banks as the most important functionary of the financial system play a dynamic role in the economic development of a nation through mobilization of savings and allocation of credit to productive sectors. This paper examined the role of some selected banks commercial bank in funding Agro-based organization Bangladesh. Data was collected from secondary sources. One sample T-Test, regression, correlation was used for analyzing the data and results discussion. The foremost determinations of this study show that how the output performance of Agro based organization was influenced by four factors namely Commercial banks credit, Interest rate, Inflation rate, Exchange rate. After the regression, the result shows that firstly: commercial bank credit and exchange rate has positive significant effect on output performance of Agro based organization in Bangladesh whereas; interest rate and the level of inflation has negative effect on output performance of Agro based organization, although they are both significant. Some problems were found from the study & some recommendations were catered for future use to any researcher in this hypothetical arena. Commercial banks should increasingly involve themselves in development financing in order to gain long-term viability benefitting themselves as well as the economy, but that should not occur at the cost of viability of the total financial intermediation process. However, Government should take deliberate efforts to increase funding in agriculture to increase Agro based organization funding in the country as well as intervene in the interest rate level in order for it to favour the common man in the country.
Keywords
Globalization, Agribusiness, Commercial Banks Credit, Sustainable Development, Financial Institutions
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