Dhaka, Nov. 4 -- Bangladesh urgently needs to frame a long-term financing policy guideline along with developing a vibrant bond market to lessen the mounting pressure on the country's reeling banking sector, speakers at a roundtable have said.

To ensure a sustainable financial market, they also called upon the authorities concerned like Bangladesh Bank (BB), Bangladesh Securities and Exchange Commission (BSEC), National Board of Revenue (NBR) and Ministry of Finance (MoF) to sit together for devising a long-term lending and investment mechanism to avoid recurrence of capital erosions in banking industry.

In absence of a long-term funding instrument, commercial banks have long been meeting the financing needs of the businesses with their...