A Comparative Analysis of Commercial Bank Loans in The Economic Development of SAARC Countries

Mohammad Nazrul Islam ^1*

Commercial bank loans significantly drive GDP growth, poverty alleviation, and economic stability across SAARC countries, fostering regional development and stability.

Abstract

This study determined a comparative analysis of commercial bank loans which played a significant role in the economic development of SAARC countries. Findings reveal how loans and credit affect the GDP, poverty alleviation and economic growth of different SAARC countries except sustainable development. Research is based upon the secondary data and results identified that higher rate of interest in most countries which is one of the main barriers for borrowers. It is also identified that bank loans does affect GDP, Poverty alleviation and overall economic growth of most countries but sustainable development will not occur unless Bangladesh can make sure that it development partners around the globe are willing to co-operate for mutual benefit. The general role of commercial banks is to provide financial services to general public and business, ensuring economic and social stability and sustainable growth of the economy. Commercial banks mostly provide short term loans and in some cases medium term financial assistance also to small scale units. Most of the commercial banks have got specialized units in their administrative structure to take care of the financial needs of the small scale industrial units. Therefore commercial bank loans helps for smoothing the commerce and trade function. Capital formation, financing Industry and trade, support agricultural development and financing consumer activities and helping in monetary policy among the SAARC countries.

Keywords:  social stability, GDP, economic growth, loans, tax, poverty alleviation

References

Akhtar, S., et al. (2004). Determinants of Gender Empowerment: A Case Study of Bangladesh. .

Alam, M. S., et al. (1998). Efforts of the Government of Bangladesh in Promoting Women's Participation: An International Perspective. Proceedings of the International Seminar on Women's Empowerment, New Delhi, India.

Baden, S., et al. (1994). Dimensions of Gender Empowerment: Absolute and Relative Perspectives. Journal of Development Studies, 30(2), 283-306.

Bakvis, P. (2006). How the World Bank and IMF use the Doing Business Report to promote labour market deregulation in developing countries. Washington: ICFTU/Global Unions.

Bakvis, P. (2006). How the World Bank and IMF use the Doing Business Report to promote labour market deregulation in developing countries. Washington: ICFTU/Global Unions.

Bhattarai, K. (2016). Economic growth and development in India and SAARC countries. Business School, University of Hull, UK.

Bhattarai, K. (2016). Economic growth and development in India and SAARC countries. Business School, University of Hull, UK.

Chowdhury, R., et al. (2009). Gender Empowerment in Rural Development: A Comparative Analysis. Rural Development Journal, 15(3), 127-145.

Farhana, R., et al. (2019). Rural Women's Empowerment in Bangladesh: A Socio-Economic Analysis. Rural Sociology, 36(3), 289-305.

Gender, Work & Organization, 11(4), 367-384.

Haque, M., et al. (2010). Gender Bias in Rural Development: A Comparative Analysis. Rural Sociology Review, 16(2), 213-230.

Hassan, M. A., et al. (2003). Impact of Male Participation on Women's Empowerment: Evidence from Rural Bangladesh. Development Economics Review, 18(3), 321-335.

Hossain, M., et al. (2001). Gender Empowerment and Rural Power Structures: A Village Perspective. Rural Development Perspectives, 14(2), 178-195.

Islam, M., et al. (2012). Challenges of Gender Empowerment: Perspectives from Rural Bangladesh. Journal of Gender Studies, 28(1), 109-125.

Kabir, F., et al. (2013). Gender Empowerment and Economic Development: A Longitudinal Analysis. Journal of Economic Development, 28(2), 201-215.

Karim, S., et al. (2014). Gender Bias in Education and Its Impact on Women's Empowerment: A Comparative Study. Education Quarterly, 20(1), 78-93.

Khan, F., et al. (2011). Structural Gender Bias in Development: Insights from Bangladesh. Development Studies Journal, 25(2), 189-205.

Klasen, S., et al. (2006). NGOs and Microcredit Programs: Insights from Bangladesh. Development Policy Review, 24(4), 421-435.

Kundra, A., et al. (2008). Examining Gender Bias in Development Activities: A Structural Analysis. Gender Studies Quarterly, 12(1), 57-76.

Rahman, A., et al. (2005). Role of NGOs in Women's Empowerment: Lessons from Bangladesh. International Journal of Social Welfare, 10(2), 187-203.

Rahman, A., et al. (2013). Contribution of female agricultural laborer to family income and employment generation in selected areas of Rangpur District. MS. Thesis: Dept. of Agricultural Economics, Bangladesh Agricultural University, Mymensingh.

Rahman, H., et al. (2006). Gender Empowerment in Agricultural Development: A Case Study of Bangladesh. Journal of Agricultural Economics, 32(2), 167-182.

Rahman, M., et al. (2009). Gender Bias in Decision Making: A Household Perspective. Journal of Family and Economic Issues, 32(3), 432-448.

Rahman, S., et al. (1999). NGOs and Women's Participation: A Case Study of Bangladesh. Gender & Society, 13(3), 245-262.

Rajan, R. G. (2008). The future of the IMF and the World Bank. American Economic Review, 98(2), 110-115.

Shiri, A., Chirume, S., & Fields, Z. (2015). Determinants of Commercial Bank Profitability from Prior-to Post- Hyperinflation?: Evidence from Zimbabwe Determinants of Commercial Bank Profitability from Prior- to Post-Hyperinflation?: Evidence from Zimbabwe. Journal of Economics, 6(2), 129–139. https://doi.org/10.31901/24566594.2015/06.02.05

Siddiqui, N., et al. (2015). Empowering Women Through NGO Interventions: A Longitudinal Study. Women's Studies International Forum, 48, 76-89.

Smith, J. K., et al. (2000). Gender Bias in Household Decision Making: A Comparative Study. Development Studies Quarterly, 16(4), 309-327.

Srinivasan, T. N. (2005). Productivity and economic growth in South Asia and China. The Pakistan Development Review, 479-503.

Uddin, M. S., Ahsan, M. K., & Haque, M. A. (2017). Comparisons of Financial Performance of Islamic Banks and Conventional Banks in Bangladesh. ABC Research Alert, 5(2), 10–20. https://doi.org/10.18034/abcra.v5i2.313

Usman, A., & Khan, M. K. (2012). Evaluating the Financial Performance of Islamic and Conventional Banks of Pakistan?: A Comparative Analysis Abid Usman Sarhad University of Science & Information Technology. International Journal of Business and Social Science, 3(7), 253–257.