Lease Report
Executive Summary
The emergence of the leasing companies, since inception successfully created public awareness about lease financing and definitely made significant progress with the objective of assisting the development of productive enterprises. In this study, we tried to highlight operational and financial aspects and overall status of leasing Company in Bangladesh, and to have an insight about the role of leasing company in Bangladesh.
Leasing in Bangladesh, like in many of its peer countries, owes its origin to the efforts of the International Finance Corporation (IFC), Washington. At the instance of IFC, the first Leasing Company in Bangladesh, Industrial Development Leasing Company of Bangladesh Ltd. (IDLC) was set up in 1984 and commenced its operations in 1986, with a 20% shareholding from Korea Development Leasing Corporation. The country’s central bank, Bangladesh Bank, put in place a regulatory mechanism under the Financial Institutions Act 1993 and the Financial Institutions Regulations 1994.
Lease financing, as organized in Bangladesh, operates with the following objectives: to assist the development and promotion of productive enterprises by providing equipment lease financing and related services; to assist in balancing, modernization, replacement and expansion of existing enterprises; to extend financial support to small and medium scale enterprises; to provide finance for various agriculture equipment; and to activate the capital market by operating as managers to the issue, underwriters, or portfolio managers.
The operations of NBFIs in Bangladesh are regulated by the Bangladesh Bank. The grant of authority to engage in borrowing from the general public is normally based on such factors as minimum capital requirement, quality of management, compliance with the concerned laws, rules, and regulations, and stability of financial standing. NBFIs may grant loans to their members and the general public up to a certain amount and may also
The emergence of the leasing companies, since inception successfully created public awareness about lease financing and definitely made significant progress with the objective of assisting the development of productive enterprises. In this study, we tried to highlight operational and financial aspects and overall status of leasing Company in Bangladesh, and to have an insight about the role of leasing company in Bangladesh.
Leasing in Bangladesh, like in many of its peer countries, owes its origin to the efforts of the International Finance Corporation (IFC), Washington. At the instance of IFC, the first Leasing Company in Bangladesh, Industrial Development Leasing Company of Bangladesh Ltd. (IDLC) was set up in 1984 and commenced its operations in 1986, with a 20% shareholding from Korea Development Leasing Corporation. The country’s central bank, Bangladesh Bank, put in place a regulatory mechanism under the Financial Institutions Act 1993 and the Financial Institutions Regulations 1994.
Lease financing, as organized in Bangladesh, operates with the following objectives: to assist the development and promotion of productive enterprises by providing equipment lease financing and related services; to assist in balancing, modernization, replacement and expansion of existing enterprises; to extend financial support to small and medium scale enterprises; to provide finance for various agriculture equipment; and to activate the capital market by operating as managers to the issue, underwriters, or portfolio managers.
The operations of NBFIs in Bangladesh are regulated by the Bangladesh Bank. The grant of authority to engage in borrowing from the general public is normally based on such factors as minimum capital requirement, quality of management, compliance with the concerned laws, rules, and regulations, and stability of financial standing. NBFIs may grant loans to their members and the general public up to a certain amount and may also