ABSTRACT
Literatures on economic development have focused considerable attentions on the established hypothesis that the financial intermediation process is a precondition of economic growth. A Development Finance Institution can play twin role in the realm of economic development viz., financing and promotion. Financing of a project would depend on the viability of the project which is determined through scrutiny of its economic, financial, and technical and management aspects. The financial institutions play a dominant role in the industrialization process of Bangladesh. The Industrial and Commercial Finance Corporation and the Finance Corporation for Industry were set up in the UK in 1945 by the commercial banks and the Bank of England. American banking sector is also far behind that of Japan and German. This reflects the weakness of Bangladeshi banking sector while that of Japan has strong financial base and influence on the Japanese corporate structure with shared authority at the top.
