Financial Liberalization

Financial Liberalization Chapter 1Introduction1.1 Statement of the ProblemsThe topic of the project paper or report is to find out the impact of interest rate reforms or liberalization on financial development and thereby economic growth. The statement of the problems is to whether interest rate liberalization as originally prescribed by the McKinnon and Shaw hypotheses or can unambiguously lead to economic growth.1.2 Title of the ReportIt is necessary to select a topic in writing a report. A well-defined topic reflects what is going on to be discussed throughout the report. The topic "Impact of Interest Rate Reforms or Liberalization on Financial Development Economic Growth" selected by me is duly approved by the respective supervisor. The report has discussed how the interest rate liberalization enhances financial development and thereby causes economic growth.The Title of the report "Impact of Interest Rate Reforms or Liberalization on Financial Development Economic Growth" especially focuses on SAARC.E conomic Growth1.3 Origin of the StudyAs a partial requirement of B.B.A. program we are required to prepare internship report. This report has been prepared during the three month's Internship Program in Bank Asia Limited, Dhanmondi Branch. In the classroom we get the opportunity to know the theoretical part of the subject. But without practical orientation it is somewhat difficult to grasp the core concept. In the project paper I have collected data from World Bank (Data). Beside this I have also collected data from published literature, Central Bank of selected countries. The main variables are deposit interest rate, lending interest rate, inflation rate, gross national income, M2 over GDP and GDP growth rate. In this report, I have tried to find out the relationship between interest rate liberalization and financial development and thereby economic growth.1.4 Rationale of the StudyThis report is a...