Suborna Barua

Internationalization of Bangladesh Banking Sector: Lessons from an Emerging Economy

Banks embrace internationalization at the fastest pace driven by advanced technology and ever-increasing inter-connectedness of the business world. Although bank internationalization in the emerging economies is often backed by high economic growth potential, significant barriers remain. This case presents, in the context of Bangladesh as a leading emerging economy, an account of the nature and extent of bank internationalization, its impacts, related challenges, and policy implications. The Bangladesh banking sector shows a rising internationalization trend mainly due to domestic market saturation and the need for innovation. However, it appears that the banks follow unusual internationalization path coupled with multi-dimensional strategic challenges and adverse financial impacts. In the end, the case poses several critical questions concerning both managerial and regulatory implications of bank internationalization.