Question

What could be the impact of COVID 19 on our capital market? Explain all the pros and cons in detail. (I am from Bangladesh so it would be better if I get the answer from Bangladeshi capital market perspective. Thank you)

Answer 1

Beneficial Impact on Bangladeshi capital market through covid-19 would be as follows-

A. It will lead to to cutting of interest rates by the central bank so it will help the business in getting the loans at low interest rates

B. the government will also take liberal step to stimulate the demand in to the economy and help the business sustain in the long run

C. it will also mean that those companies who have a higher market share will grow larger because there would be elimination of their competitors

D. There would be a lot of incorporation of safety measures into the the day-to-day functioning of various companies and that would make them more ethical.

Negative impacts of covid-19 on Bangladeshi market-

A. it will lead to oo tightening of credit flow and more of the businesses will shut down

B. It will also lead to liquidity squeeze in the market which will eventually lead to lesser capital available

C. There would be a demand freezing in the economy due to shutdown of various operation.