Large investments must come through capital market: Finance minister

Finance Minister Amir Khosru Mahmud Chowdhury has said that large-scale investment must be channelled through the capital market instead of relying excessively on bank-based financing, arguing that Bangladesh needs a fundamental shift in its financial architecture.

He made the remarks while inaugurating a conference titled "Road for Trade, Growth and Economic Diplomacy 2026 – Navigating Risks: Leveraging Resilience" held at a hotel in Dhaka today (13 June). 

The conference was jointly organised by the International Trade, Investment and Technology Wing of the Ministry of Foreign Affairs and the Bangladesh Investment Development Authority (Bida), aiming to serve as a working platform for informed policymaking on trade, investment, and economic diplomacy.

Speaking at the event, the finance minister said the current structure of short-term deposits and high-interest lending through banks is "not working well" for either financial institutions or businesses.

"High interest rates, short-term deposits and long-term financing mismatch are not good for anybody – not for banks, not for clients," he said.

He stressed that large investments should raise equity and debt directly from the capital market.

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The minister said the existing financial system, heavily dependent on bank loans and high interest rates, is constraining business growth and increasing pressure on the economy.

He also noted that public finance architecture needs to be restructured in line with global changes in financial flows, where borrowing costs from multilateral and bilateral sources have increased significantly.

"The cost of finance is going up globally. Even multilateral lenders who used to lend below 1% have crossed 1% to 2%," he said.

Khosru also said the government is going to form a taskforce to oversee deregulation activities as part of its broader reform agenda to improve the business environment.