Growth and Stability of the Banking Sector of Bangladesh
What do the macroeconomic indicators say?
macroeconomics, banking, bangladesh
Executive Summary
This documentation presents an analysis of the economic actions and performance of the banking sector of Bangladesh, and their correlation with the country’s broader economic performance, as reflected in the macroeconomic indicators. The data for this study was sourced from World Bank, IMF-Financial Soundness Indicators(FSI) and Kaggle(compiled macroeconomic dataset). Key indicators were:
- GDP per capita
- Inflation of Consumer Prices
- Total Investment
- Broad Money of GDP
- Domestic Credit to Private Sectors of GDP
- Total Loans
- Loans to Domestic Economy
- Deposits to Loan Percentage
- Non-performing Loans Percentage
The analysis finds that while macroeconomic indicators reflect genuine growth over the period, banking sector performance reveals deeper structural vulnerabilities that constrained that growth’s full potential.
Purpose of this project
This was undertaken as the second practice exercise data science project.
The scope of practice was:
- Using Postgresql (DDL, DML, DCL, TCL) for real world situations like creating a database locally, connecting to it using (Terminal/Shell) and managing it, manipulating the database, loading data, doing analytical queries and bringing out the results in an applicable format instead of just query practices in online code practicing platforms.
- Doing a project with bigger datasets from multiple sources and distinct data files.
- Doing a Finance focused project, essentially Finance of Bangladesh.