Financial Intermediation of Remittances around the World and Lessons for Bangladesh

International Journal of Business and Innovation. Vol. 2, Issue 6, 2016

Title: Financial Intermediation of Remittances around the World and Lessons for Bangladesh

Author: Md. Mosharref Hossain, Md. Ruhul Amin

Migrants’ remittance plays a significant role in the economic development of developing countries. Remittances received from migrants is one of the greatest source of external finance for many low/middle income countries and it ensures the foreign currency reserve for those countries. All the countries in the world are somehow involved in the migration process. Some of the countries are labor sending countries, some are receiving, or both and many others as transit countries. Financial intermediation process through remittances offers multiple benefits to both the senders and recipients. The intersection between remittances and financial intermediation can ensure the better economic development of Bangladesh. However, the full developmental potential of remittances in Bangladesh is far from being realized. The main reason is that most of the financial institutions in Bangladesh yet to develop a good number of remittance based products to tap the remittances into financial system. Therefore, this paper intends to identify remittance based products around the world and take it into the account for developing some products in Bangladesh. The study mainly based on the secondary data and information. The findings of the study revealed that several countries in the world have developed different remittance linked products and services for tapping remittances into financial system and they are getting significant benefits from them. From the international experiences this paper provides some suggestions to develop such products in Bangladesh for adopting new opportunities.

Keywords: Remittances, Financial Intermediation, Products and Services Development, Bangladesh.

Date- November 30,-0001

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