Interest Rate Convergence in Bangladesh


  • Dewan M. Rahman University of Dhaka and BRAC University, Bangladesh
  • Kohinur Akter BRAC University, Bangladesh


Financial sector reform programs, Private commercial banks, Nationalized commercial banks, Foreign commercial banks, Specialized banks, Interest rate convergence


Financial liberalization, a widely-accepted policy paradigm since the 1980s, aims to remove financial repression and thus establish an efficient financial sector as a pre-requisite for financial development. Interest rate convergence is one of the obvious outcomes of the interest rate liberalization, a crucial part of financial liberalization. Uniformity of interest rate should be there in a free and competitive financial market. This paper examines the state of interest rate convergence by measuring the degree of convergence in the financial market of Bangladesh, a success case of financial liberalization initiated in the 1990s.


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How to Cite

Rahman, D. M., & Akter, K. (2012). Interest Rate Convergence in Bangladesh. International Journal of Banking and Finance, 9(1), 81–97. Retrieved from