EPISODE 5: Financing Landscape in Bangladesh Finance School by PFS

My guest in this Podcast is Mr. Sadekur Rahman. He has over 10 years of experience in banking. His area of specialty includes Relationship Management of large Corporate clients, Credit Analysis, Financial Analysis, Credit Monitoring, etc. Today, we will discuss the current financing landscape of Bangladesh with special attention to the banking sector. We will also discuss post-COVID challenges for the economy in general and banking sector in particular. I and Sadek bhai are designing a course on "Credit Risk Management". It will be a small group of people and interested participants can pre-book their participation by contacting us. 

In this podcast, we discussed the following topics on the economy and the banking sector.


The COVID-19 came as a perfect storm for the economy and the banking sector. What are the main challenges that the banking sector is facing today?
Everyone is talking about a New Normal for the economy and the banking sector. What does "New Normal" mean?  What will be the new normal in our banking sector Post COVID? Will there be any fundamental change in the nature of banking like the adoption of Fintech?
Most of the economies around the world are providing massive stimulus to the economy with the US being the dominant stimulus provider among all economies. Bangladesh Govt. has also announced massive stimulus packages to revive the economy. The size of all these packages exceeds BDT 1 lac crore which is approx 3.7% of our GDP. Medium for implementation for most of the packages remains the banking sector? A sector that is already under stress condition. What could be the impact on the banking sector in implementing these packages?
Some experts have suggested the use of the Credit Guarantee scheme. What's your take on that? Does it have any downside? How it is being practiced in other peer countries?
Economists differ widely in the shape of our Economic recovery. Some people are hoping that it will be a "V-Shape" recovery. some are saying it can "U-shape", while others saying it will be a "W-shape" recovery. The most pessimistic is "L-shape" which is prolonged depression. Can you explain all these recovery shapes? How do you think it may affect the banking sector?
The latest buzzword in the banking sector is downward salary adjustment and/or lay-off? There have been strong debates on it and we have seen in the newspaper regarding some proposals on it. This will probably the first time in the history of the banking sector such things happening.  How do you think banks and bankers will tackle this rather delicate issue?
We have just seen that the budget is proposed. And many banking sector analysts are disappointed with no incentive for the banks in the budget. No tax cut or stimulus package. What is your take on the budget with respect to the banking sector?
There has been a huge hue and cries on the interest rate cap @9% except for credit cards.  What could be the impact of interest rate capping on all loans from April 1, 2020?
So, what does all your analysis mean for the investors in the banking sector? Prices look extremely cheap. How the investors should position themselves?
Is there any light at the end of the tunnel? Anything that makes you hopeful about the sector? Any silver linings?
My last question is regarding a career in Finance: What do you suggest to a young grad who is preparing oneself for a career in Finance in Bangladesh? Especially, if any young grad wants to build his or her career in the finance industry, what would be your suggestions?

Thanks to Mr. Sadekur Rahman. And many thanks to the listeners.