Independent study evaluates our social and economic impact in Bangladesh
Standard Chartered has today released an independent report on the social and economic impact of its operations in Bangladesh. This is the third in a series of studies which evaluate the overall social and economic impact of the Bank’s activities.
The study, commissioned in 2012 and led by Professor Ethan Kapstein of Georgetown University in Washington DC, has found that Standard Chartered makes a significant contribution to ongoing economic development in Bangladesh, a country which has overcome significant challenges to enjoy strong economic growth in recent years.
The report findings state that the Bank supports, directly and indirectly:
- 1.1 per cent of Bangladesh’s GDP and 3.3 per cent of total tax receipts to the Bangladeshi government.
- Through its direct tax payments, the Bank is one of the single most important tax payers in Bangladesh.
- 466,000 jobs in Bangladesh, which equates to 0.6 per cent of the total jobs in the country. When its lending to financial institutions is included, the Bank’s impact amounts to 655,000 jobs or 0.9% of the labour market.
- 13.2 per cent of total Bangladeshi trade through its loans and trade finance facilities.
In addition, Standard Chartered:
- helped Bangladesh receive its first-ever sovereign debt rating, marking a breakthrough for the image of Bangladesh among international bond markets and foreign direct investors;
- has financed 24 per cent of the total installed power in the country, helping to relieve one of the major constraints on the Bangladesh economy;
- has been the first bank to introduce a number of innovations, including Bangladesh’s first ATM, credit card and international debit card;
- has pioneered a number of derivative products to help Bangladesh’s businesses manage the risks of trading overseas.
The report also recommends areas where Standard Chartered could further deepen its impact, highlighting in particular the opportunity with small and medium sized enterprises. For every USD 1 million of finance provided to SMEs, the Bank supports over 1,400 jobs.
Peter Sands, Standard Chartered’s Group Chief Executive, commented, “Standard Chartered has operated for more than 100 years in Bangladesh. During this time, we have continued to invest and grow in Bangladesh, steadily building up our presence. With the encouraging increase in the pace of social and economic development in recent years, we see great opportunities in the country.
“Through their work, Professor Kapstein and Dr Kim have provided us with valuable insights that we can incorporate into our future strategy for Bangladesh. Further increasing our engagement with SMEs will be one of our priorities.”
Professor Ethan Kapstein, lead author of the report, said, “Standard Chartered has a significant impact in Bangladesh, consistent with its status as the oldest and largest foreign bank in the country. Developing nations such as Bangladesh lack the domestic savings needed to fuel investment and require access to international markets in order to grow. Banks such as Standard Chartered help to fill a major economic gap.”
Launched in 2009, this series of social and economic impact studies have previously looked at Ghana and Indonesia. Through these reports, among the first of their kind to be commissioned by an international bank, Standard Chartered aims to measure its impact on the economies where it operates and identify ways to build on this impact.
For further information please contact:
Bitopi Das Chowdhury
Head of Corporate Affairs, Bangladesh
Tel: +88 02 883 3003-4, ext. 5200
Email: BitopiDas.Chowdhury@sc.com
Shaun Gamble
Senior Manager, External Communications
Tel: +44 20 7885 5934
Email: Shaun.Gamble@sc.com