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ng by th

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Md. M

PhD Ca

utra Busine

ol of Econom

2023   Acc

15i1.18968 

f money in 
business to 
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prises (CMS
to the larg

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from the la
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practice of

n doing so; 
ed to TRX
h gap for the
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ty and signi

Blue-chip c

           

he Enca

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andidate, Pu

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ess School, U

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the econom
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            35

ashmen

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man (Corres

utra Busines

Mohd Padz

Universiti P

Annuar Md N

anagement,

e 6, 2023  

https://doi.or

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Asian

            

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sponding Au

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zil Hashim 

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rg/10.5296/

in the form
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ajfa.v15i1.1

m of trade r
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ains tied in
provides a 
into cash fr
nd modus o
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adiness, Fin

RX in Bang
MEs close th

capital pro

s, TRX 

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

ceivabl

anglade

sia 

Malaysia, Ma

2023 

18968 

receivables 
ms. There ar
ttage, micro
finished go

CMSMEs g
During this

n trade rec
financing 

rom the inv
operandi of 

X in the co
nTech indus
gladesh is r
heir busines
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ccounting 
946-052X 
15, No. 1 

think.org/  

les 

esh 

alaysia 

that are 
re 7.818 
o, small, 
ods, and 

generally 
s period, 
eivables 
solution 

vestment 
TRX. It 
ntext of 
stry, and 
rare that 
s for the 
gh TRX 

 



 

 

1. Intro

A large
trade re
econom
(firm); 
firm or 
Practica
firm kn
(MNC)

There a
firms ar
(87.52%
(10.99%
(0.07%)
small, a
remaini
In othe
working
through
indirect

1.1. Pro

The CM
blue ch
financia
money 
services
instantly
lead tim
paymen
into a f
the pay
trade re
new wo
buyer(s
such as
dues of 

oduction 

e amount of
eceivables 

mic activitie
or firm to f
business to

ally, these e
nown at na
.  

are 7.818 m
re SMEs an

%) are cotta
%) are smal
) are large 
and medium
ing 1% larg
er words, th
g in the stat
h few (1%) l
tly on the su

oblem State

MSMEs do 
hip firms. T
al institutio
invested in

s to their cu
y. They pay

me is called
nt remains u
financial pro
yment. Thei
eceivables. T
ork orders f
s) whose exi
s wages and
f raw materi

f money in
are generat
s are execu
firm. In the

o business (B
economic a

ational level

million firm
nd their co

age enterpri
l enterprise
enterprises 

m enterprise
ge firms are 
he total bu
te. A large p
large firms 
upplies from

ment 

not possess
They do no
ns. Howeve
n their bus
ustomers. So
y after a per
d the credit
unpaid that 
oblem for C
ir investmen
They suffer
from the ne
isting bill is
d salaries, e
ials purchas

           

the econom
ted from th

uted between
e paper, the 
B2B). The s
activities ma
l or even a

ms in Bangl
ontribution t
ses, 0.104 m

es, 0.007 mi
(BBS, 201
s (CMSME
directly or 

usiness activ
portion of t
owned priv

m the small 

s the financ
t carry the 
er, they hav
iness. As p
ome of thes
riod of 15 d
t period. D
gives the b

CMSMEs. T
nt remains 
r from the s
ew buyers 
s not paid y
electricity a
ed, etc.  

            36

my remains
he economi
n individua
focus is on

size of the f
ay take pla
at internatio

ladesh econ
to GDP is 
million are 
illion (0.09%
3). So, the 

Es) constitut
indirectly d
vities in th
the business
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cial stateme
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ve an equit
part of the
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birth of the 
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shortfall of 
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and gas bill

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ic activities
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onal level l

nomy. Gros
around 22%
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firms in the

te 99% of al
dependent o
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publicly and
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nt as so hap
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the hands o
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n Journal of F

            

m of trade 
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ual; individ
mic activiti
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n a firm at c
like a mult

ssly, over 9
%. Specific
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dium enterpr
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on CMSME
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ppens in th
loan from b
capital. It is
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he corporate
90 days, or
small supp

vables for C
hock of the
of their buy
apital. They 
xisting buy

heir regular 
ent, rentals 

 

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

receivables
n on credit

dual to orga
ies between
l level to lar
cottage lev
tinational c

98 percent 
cally, 6.843
33%), 0.859
rises, 0.005
s of cottage
in the coun

Es for their s
ndent on th
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he case of la
banks or n
s their hard
ply (sell) g
e clients, do
r the like on
pliers’ (CM
CMSMEs. I
e waiting pe
yers in the 
 cannot add

yers, even f
operating e
of long-ter

ccounting 
946-052X 
15, No. 1 

think.org/  

s. These 
t. These 

anization 
n firm to 
rge level. 
el and a 

company 

of these 
 million 

9 million 
5 million 
e, micro, 
ntry. The 
supplies. 
he firms 
rried out 
rectly or 

arge and 
non-bank 
d earned 
goods or 
o not pay 
nes. This 

MSMEs’) 
It results 
eriod for 
form of 

dress the 
from the 
expenses 
rm loan, 



 

 

1.2. Res

1.2.1 G

The bro
receivab

1.2.2 Sp

To attai

i. To fin

ii. To as

ii. To ex

1.3. Sig

The sig

i. Macro

Finance
firms in
tied in 
respecti
would i
2041, V

ii. Micr

The sig
99% of 
of all bu
industri
shortag
51% of
2008 to
CMSM
This lea

1.4. Sco

The stu
capital 
of TRX
Banglad
Techno

    

search Obje

General Obje

oad objectiv
bles for CM

pecific Obje

in the overa

nd the conce

ssess the glo

xamine the 

gnificance of

gnificance of

o Perspectiv

e (or capita
nvolved in t
receivables

ive firm), th
increase fur

Vision 2071

ro Perspectiv

gnificance fr
f firms in th
usiness acti
ial units suf
e. Accordin

f SMEs clos
o 2012 in 

MEs acutely 
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ope of the St

udy focuses
needs of CM

X. It looks in
desh. It exa

ology) in the

ectives 

ective 

ve of the stu
MSMEs thro

ectives 

all objective

ept of TRX

obal practic

application

f the Study 

f the study i

ve  

al) is a majo
the econom
s could be 
he economy
rther, the pe
, Delta Plan

ve  

rom micro l
e economy 
ivities and p
ffer from m
ng to the su
sed due to t
the develo
face the ca

ng a solutio

Study  

s on provid
MSMEs. It
nto the glob
amines the e
e country. It

           

udy is to find
ough a trade

e, the study 

.  

ce of TRX. 

n of TRX in 

is described

or factor fo
my run the b

liquidated t
y would get 
erspective p
n: Vision 21

level relates
are in the c

provide two
any folds o

urvey of Me
the lack of c
oping econo
apital shorta
n for worki

ing an alter
covers wor

bal scenario 
existing rela
t observes th

            37

d a liquidity
e receivable 

addresses th

 

Bangladesh

d from macr

or economic
business acti
timely (just
accelerated

plans of the 
100, etc. wo

s to the firm
category of 
o out of ever
of problem i
edium Indu
capital, part
omies (UN
age for runn
ing capital f

rnative mod
rking on pr
of TRX. It 

ated market
he prepared

Asian

            

y solution fo
exchange (

he followin

h  

ro and micr

c growth of
ivities for th
t after the 
d further, th
governmen

ould get mom

ms involved.
CMSMEs. 
ry three job
in which the

ustry Develo
ticularly wo

NCTAD, 20
ning the bu
for CMSME

de of finan
roviding the
assesses th

t for TRX i
dness of the 

n Journal of F

            

or working 
(TRX) in Ba

g specific o

o perspectiv

f a country.
he country. 
discharge o

he productiv
nt such as V
mentum fur

 It refers to
They gener
s in the priv
e most dom
opment Ass
orking capit
001). In Ba
siness (The

Es.  

cing for me
e concept an
he potential 
in terms of 
country for

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

capital tied
angladesh. 

objectives:  

ves:   

 Different k
 If their inv
of the work
vity of the e
Vision 2031
rther.  

o CMSMEs.
rate more th
vate sector. 

minant one i
sociation (M
tal, in the p
angladesh, 
e Daily Star

meeting the w
nd modus-o
or space of
FinTech (F

r TRX.  

ccounting 
946-052X 
15, No. 1 

think.org/  

d in trade 
 

kinds of 
vestment 
k by the 
economy 
, Vision 

. Almost 
han 90% 

 These 
s capital 

MIDAS), 
period of 
50% of 

r, 2019). 

working 
operandi 
f TRX in 
Financial 



 

 

1.5. Con

 
 
 
 
 

Figure 
financin
concept
countrie
the app
and/or a

2. Liter

Literatu
with the
study.  

2.1 Und

The obj
firms. B
theories
(ii) Pec
Trade-O
Black a
Miller (

Under l
motives
paying 
repair, b
assets (
address
TRX to
their pr
making
theory. 

The pec
fund. T
fund (B

nceptual Fr

Figu
Sou

1 depicts th
ng through 
t of TRX (C
es has been

plication of 
adaptation o

rature Revi

ure review i
e underpinn

 

derpinning T

jective of t
Broadly, the
s of the stud
cking Order
Off Theory 
and Myron S
(1958). 

liquidity pre
s: (i) transa
utility bills
buying hou
(Stephenson
s the regular
o purchase r
roduction c

g profit. In 
 

cking order
The financin
Bhama, Jain 

Con

Prac

App

ramework  

ure 1. Res
urce:  The

he overall f
TRX is ju

CT) has be
n stated. Thi

TRX (AT)
of financing

iew 

is divided in
ning theorie

Theories  

the propose
e study fall
dy include (
r Theory by

by Myers 
Scholes (19

eference the
action motiv
s, etc.; (ii) p
uses, etc.; (i
n, 1950; Jh
r operationa
aw material

costs to ma
this way, t

r theory sta
ng through 

& Yadav, 2

ncept of TRX

ctice of TRX

plication of T

           

search Fram
e Author 

framework o
ustified with
en develope
irdly, a thirs
) in the con
g through TR

nto two part
es. Secondly

ed mode of 
ls under the
i) Liquidity
y G. Dona
(1984); (iv

973), and (v

eory, Keyne
ve to meet 
precautiona
ii) speculat

hingan, 200
al expenses 
ls at the fav
aximize the
the financin

ates that ma
discounting
2015).  

X (CT) 

X (PT) 

TRX (AT) 

            38

mework 

of the study
h the expla
ed. Second
st for TRX 
ntext of Ba
RX (FT) in 

ts. Firstly, i
y, it presen

f financing 
e area of w
y Preference
aldson, S. C
v) Black-Sc
v) M-M The

es mention 
daily needs

ary motive 
tive motive 
04). The ob

of the enter
vorable price
eir profit. T
ng with TR

anagers of t
g invoices w

Asian

            

y. The stud
anation of 
ly, the prac
has been ex

angladesh. A
Bangladesh

t provides t
nts the previ

is to fund w
orking capi

e Theory by
C. Myers, a
choles Opti
eory by Fran

that people
s such as b
to face any
to obtain c

bjective of 
rprises. The
es (when th

TRX provid
RX goes thr

the firms pr
with TRX is

Finan

n Journal of F

            

dy is qualita
CT, PT, an
ctice of TRX
xplored with
All these le
h.   

he brief rele
ious researc

working ca
ital finance.

y John Mayn
and N. S. M
ion Pricing 
nco Modigl

 need mone
uying groce

y unforeseen
capital gain 
financing t

ey also avai
he prices go 
des a venue
rough the l

refer to use
s the use of

ncing through

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

ative in natu
nd AT. Fir
X (PT) in d
h the assess
ead to the a

evance of th
ches relevan

apital for su
. The under
nard Keyne
Majluf (201

Model by 
liani and M

ey for three
eries, payin
n costs suc
through tra

through TR
il financing 
down) to m
e for inves
liquidity pre

e internal so
f internal so

h TRX 

ccounting 
946-052X 
15, No. 1 

think.org/  

ure. The 
stly, the 
different 
sment of 
adoption 

he study 
nt to the 

upplying 
rpinning 
s (1930); 
15); (iii) 

Fischer 
erton H. 

e distinct 
ng rents, 
h as car 

ading on 
RX is to 

through 
minimize 
stors for 
eference 

ource of 
ource of 



 

 

The trad
debt at 
& Lotfa
the wor
expense
the firm
market 
expandi

The Bl
influenc
relevan
The dis
strength
period o

The M-
value. I
called e
do not 
receivab
create e
enhance
value of

2.2 Pre

The pre
touches
factorin
trade re
al. (201
receivab
where t

There i
busines
that can
of finan
emerged
transfor
through
through

FinTech
represen

de-off theor
which the m
aliei, 2019)
rk orders o
es such as o
ms sometim

rate for s
ing market 

lack-Schole
cing the pri
ce with the
counting pe

h of the deb
of the invoi

-M theory i
It states tha
earnings bef

create exte
bles) to get
extra risk f
e the earnin
f the firm. B

vious Studie

evious resea
s the off-bal
ng, supply c
eceivable ex
17) is prob
bles. They 
trade receiva

is a gap be
ss models as
nnot match 
ncing with
d. Ketterer
rmative dev
h discountin
h trade recei

h is the s
ntatives of 

ry strives fo
marginal be
. Under fina
or paying t
office rent, r

mes avail fin
securing lo
share, etc. 

es model; t
ice of deriv
e financing 
ercentages, 
btor to who
ce, kind of 

indicates th
at the value
fore interest
ernal debt 
t liquidity. 
for the firm
ng power o
Briefly this 

es   

arches on TR
lance sheet 
chain finan
xchange is s
ably is the
worked on 
ables (invoi

etween the 
s well as tec
always the 

h trade rec
r (2017) st
velopments 
ng trade rece
ivable excha

short form 
companies 

           

or an optimu
nefit and co
ancing with
the urgent 
rental of loa
nancing wit
ong-term bu
  

though it w
vatives such
through TR
fees, intere
om the invo
goods (Not

at debt in th
e of a firm 
t and taxes 
burden for
The balanc

m. The opp
of and mark
way, the M

RX include
financing m
cing (or rev
scarce (Van

first evide
how the pr

ices) are tra

convention
chnologies. 
requiremen
eivable exc
tates that 
that have gi
eivables wit
ange has a c

of Financ
that provid

            39

um level of
ost of debt f
h TRX, the 
operating b

an, etc. with
th TRX eve
usiness gai

was develo
h as forward
RX. The fin
st, etc. are i
oice has be
te 1) or serv

the capital s
depends o
(EBIT). Th

r the firm. 
ce sheet re

portunity of
ket share fo

M-M theory i

e the studies
mechanisms
verse factor

nnoni, 2020
ence in the 
rice of an in
aded.   

nal ways o
Business m

nts of conve
change (TR
current con
iven the bir
th the help o
connotation

cial Techn
de financial 

Asian

            

f capital stru
financing ar
firms trade

business ex
h the fees an
en with hig
ins such a

oped to ex
ds, futures, 
nancial instr
influenced b
een drawn, 
vices provid

structure of 
n the capita

he financing
The firm 

mains the 
f getting m
or the firm.
influences f

s conducted 
s or alternat
ring), etc. T
; Ozili, 201
area of fin

nvoice is de

of financing
models have
entional fina
RX), FinTec
ntext of fi
rth of this k
of an excha

n with (i) Fin

nology. It 
services w

n Journal of F

            

ucture comp
re equal to e
-off the ben

xpenses or 
nd interest to
gher fees an
as retaining

xplore the 
options, an

rument in T
by factors su
brand of th
ed, etc.  

f a firm doe
alization of
g through di
uses its cu
same. As a
oney quick
It leads to

financing w

on FinTech
tive mode o
The quantit
8). The wo

nancing thr
etermined in

g and the e
become co

ancing. As a
ch, digital f
inance is m
ind of finan

ange. It indic
nTech and (

refers to 
with applicat

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

posed of eq
each other (
nefit of disc
paying the
o be paid. I
nd interest t
g good cu

underlined
nd swaps; it
TRX is the 
uch as the f
he debtor, m

es not impa
f its earning

discounting 
urrent asset
a result it d
kly with TR
o increasing

with TRX.  

h, digital fin
of financing
ty of resear

ork of Dorfl
rough tradin
n the online

emergence 
omplex incr
a result, new
finance, et

moving thr
ncing: the fi
cates that fi
(ii) digital f

the compa
tion of mod

ccounting 
946-052X 
15, No. 1 

think.org/  

quity and 
(Haddad 
charging 
 regular 
n reality, 
than the 
stomers, 

factors 
t has the 
invoice. 

financial 
maturity 

ct on its 
g power 
invoices 
ts (trade 
does not 
RX may 
g market 
    

nance. It 
g such as 
rches on 
eitner et 
ng trade 
e market 

of new 
easingly 

w modes 
tc. have 
rough a 
inancing 
inancing 
finance. 

anies or 
dern and 



 

 

innovat
FinTech
automat
2017a).

Dorfleit
FinTech
each seg
other  
and fac

Source:

FinTech
coopera
without
days, w

tive technol
hs usually t
ted product
.  

tner et al. (2
h industry in
gments. Th
FinTechs a

ctoring. This

:  Dorfl

hs in credit 
ation with b
t recourse (

weeks, month

logies. Thes
try to attrac
ts and servi

2017a) has 
nto major fo
e segments 
s shown in 
s is why, a b

Figure
eitner et al.

and factor
bank(s), Fin
(Note 2). L
hs via mobi

           

se financial 
ct the custo
ces than the

shown the d
four segmen

are (i) finan
Figure 2. T

brief of cred

e 2.  Segm
, (2017a) 

ring works w
nTechs prov
oans are so
ile phone. H

            40

services ar
mers with m
e ones that 

divisions of
nts in accord
ncing, (ii) a

This study is
dit and facto

ments of the

 

with a sing
vide credit f
ometimes g
Here, FinTec

Asian

            

re internet b
more user-f
are currentl

f FinTech in
dance with t
asset manag
s mostly rela
oring is give

e FinTech In

le partner b
facilities to 
iven for a s
chs provide

n Journal of F

            

based and ap
friendly, eff
ly available

ndustry. The
the business

gement, (iii) 
ated to the s
en here.  

ndustry 

bank or a nu
the individu
short-time p
 innovative

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

pplication o
fficient, tran
e (Dorfleitn

ey have div
s models ap

) payments, 
sub-segmen

umber of b
uals and bu
period such

e factoring s

ccounting 
946-052X 
15, No. 1 

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oriented. 
nsparent, 
er et al., 

vided the 
pplied in 
and (iv) 

nt, credit 

 

banks. In 
usinesses 
h as few 
solutions 



 

 

such as
Compan
transpar
2017a).

Digital 
electron
exchang
etc. (Go
Finance
innovat
micro-f
has wid
infrastru
have be

Zhang e
immens
increase
2015. T
2015. F

Baeck e
technol
organiz
financin
large fi
financin
through

Gomber
in the a
through
receivab
line) fac

Vannon
cash in 
facilitat
take fin
a buyer
or produ

Klapper
factorin
(finance

s selling cla
nies under c
rent, innov
. 

finance re
nic product
ge systems,
omber, 201
e Institute (
tion for inte
finance, pay
dened the c
ucture is no

een easily ac

et al. (2016)
se in terms 
ed substanti

The volume 
From the glo

et al. (2014
ogy based 

zations. Aca
ng has expa
rms get mo
ng such as 
h trade recei

r et al., (20
area of fact
h digitized 
bles or trad
ctoring and 

ni (2020) st
advance, ju

tes the supp
nancing to p
r (debtor) cr
ucer. 

r (2006) an
ng in wh
ers/investor

aims online
credit and f
ative, fast, 

epresents th
ts and serv
 home bank
7; Banks, 2

(2015) desc
egrating dist
yment soluti
overage of 
ot efficient. 
ccessible he

) and Dorfl
of volume

ially in rece
of this mark

obal perspec

4), Ketterer 
financing h

ademics are
anded the ac
ore access t

bank loans
ivable excha

17) mention
toring, crow

format. T
ding on invo

a hybrid ve

ates that tra
ust after the
ply chain fin
pay their sup
reated for th

nd Dorfleitn
hich the i
rs). If at the

           

e, offering f
factoring au
and efficie

he digitaliz
vices in the
king, home 
2001). It als
ribes Digita
tributed digi
ions, peer-t
banking se
Payment sy

ere due to di

eitner et al.
 and growt
ent years. In
ket was £97
ctive, the m

(2017), and
has improv

e consistent 
ccess of the 
to firms. In 
s and overd
ange (TRX)

n that now-
wdfunding, 

The underli
oices is akin
ersion of fac

ading of co
e delivery of
nancing (or
ppliers’ bills
he delivery 

ner et al. (2
invoices a
 beginning 

            41

factoring so
utomate the
ent in disch

zation of th
e financial 
trading serv

so includes 
al Finance 
ital banking
to-peer lend
ervices in th
ystems such
igital financ

 (2017b) sta
th. The mar
n the UK, t
7 million in

market is also

d Dorfleitne
ved the acc

in the opin
e firms and i

addition to
draft facilit
) can enhan

-a-days vari
supply cha

ined transa
n to factorin
ctoring.  

ommercial i
f goods, ins
r reverse fac
s. This is a 
(selling) of

2017b) stat
are assigne

of the servi

Asian

            

olutions wi
ir business 
harging thei

he financia
sector suc

vices, autom
all mobile 
start-ups as

g, mobile so
ding and cro
he less deve
h as the con
ce (Gomber

ate that the 
rket for onl
this market 
2013 while

o growing in

er et al. (20
cess to fina
nion that th
individuals 
o traditional
ties, the liq

nce the work

ious kinds o
ain financin
action, i.e.,
ng. It is an e

invoices pro
stead of wai
ctoring) und
kind of sell

f goods or s

te that this 
ed to a 
ice (factorin

n Journal of F

            

thout minim
processes t
ir services 

al industry.
ch as credi
mated teller 
and app se

s “companie
olutions and
owd-funding
eloped econ
ncept of “p
r, 2017; Rizz

practice of 
line based i
has tripled 

e the same w
ncreasingly

017b) state t
ance for bo
is kind of a
to the finan
l factoring 

quidation pr
king capital 

of platforms
ng to offer 
 the disinv

evolution of

ovides an o
iting for a c
der which t
ling a loan m
ervices on c

financing h
single or 

ng service) 

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

mum requir
to be cost e
(Dorfleitne

. It covers 
it cards, el
r machines (
ervices. The
es that are 

d delivery p
ng”. Digital 
nomies whe
prepaid” and
zzo, 2014). 

f digital fina
invoice trad

d between 2
was £325 m
y.  

that innova
oth individu
alternative m
nce. Both sm
and other f
rogram of 
base of CM

s have been
financing 

nvestment o
f the traditio

opportunity 
credit period
the large co
made on the
credit by a 

has similar
multiple 

all the invo

ccounting 
946-052X 
15, No. 1 

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rements. 
ffective, 

er et al., 

all the 
lectronic 
(ATMs), 
e Digital 
creating 
latforms, 
Finance 

ere bank 
d credits 
 

ancing is 
ding has 
013 and 

million in 

ative and 
uals and 
mode of 
mall and 
forms of 
invoices 

MSMEs.  

n formed 
services 

of trade 
onal (off 

to avail 
d. It also 
orporates 
e part of 
supplier 

rity with 
factors 

oices are 



 

 

assigne
Howeve
also be 
which t
factorin
TRX is
the bene

Tinn an
receivab
Crowdf
resourc
investor
particip

Chatnan
receivab
instituti
received
financin
for bidd

Ozil (20
and pro
exchang
product
financin
finance 
for poor

3. Rese

The me
seconda
venues 
screene
Banglad
in differ

The ex
platform
and pre
as well 

On the
Banglad

d to a sing
er, this fixe
discounted

the bill is d
ng client). O
s open to m
eficiary, i.e

nd Chemla 
ble exchan
funding is a
es to achie
rs can part

pate under T

ni (2018) f
ble exchan
ional) for p
d at the ma
ng works as
ding a price 

017) finds t
omoting ec
ge increase
tion of good
ng, poverty
providers a

r entreprene

earch Meth

eta-analysis 
ary sources
(46) have 

ed. Few of 
desh Bank; 
rent countri

xisting form
ms or invoi
evious resea

as the globa

e other ha
desh-based 

gle factor, in
ed policy w
d with mult
drawn), and
On the othe

many finance
. the CMSM

(2019) and
nge is akin 
a financing

eve a comm
ticipate un

TRX to prov

finds that u
ge, an invo
purchasing 
aturity date
s like as a s
and the div

that there is 
conomic gr
s the volum
ds and serv

y reduction,
and users), 
eurs, etc. 

hodology 

procedure 
 and they a
been referr
the importa
Bangladesh

ies; SME Fo

m of TRX 
ice platform
arch works h
al status of 

and, the d
contexts ha

           

nvoices are 
with a single
tiple factors
d the client 
er hand, un
ers/investor

MEs. 

d Belleflam
to crowdfu

g in which 
mon goal: g
der crowdf

vide capital 

under the m
oice is offe
at a disco

e [the due d
stock excha
vidend is pa

a relation b
rowth of th
me of financ
vices in the 
, cost of fi
governmen

has been us
are both qu
red), i.e., jo
ant data sou
h Economic
oundation, B

in differen
ms or invoic
have been u
TRX.  

data from 
ave been use

            42

 discounted
e factor is 
s with the c
(the suppli

nder financi
rs that lead 

mme et al. (
fuding in w
many contr

generally pr
funding; si
to a firm.  

mechanism 
ered openly

ount price a
date of pay
ange where 
aid based on

between fin
he state. A
cial transac
economy. I

inance for 
nt revenue, g

sed in the st
uantitative a
ournals, web
urces (beyo
c Review; le
Bangladesh

nt countrie
ce trading p
used to find

World B
ed to find th

Asian

            

d with a sin
amendable.
consent fro
ier or the b
ing through
to lowering

(2013) state
which multi
ributors cal
roviding ca
milarly ma
 

of discount
y to all kin
and the ful
yment of th
a share is o

n the face va

nancing thro
Arranging f
tions in the
It also addr
intermediat
governance

tudy. The d
and qualitat
bsites, perio
ond journal 
eading trade
h; relevant w

s is mostly
platforms. T
d the concep

Bank, multi
he applicatio

n Journal of F

            

ngle factor 
 Sometime
m the debt

beneficiary 
h discountin
g financial 

e that finan
ple investo
lled backer
pital for a 

any finance

ting an inv
nd of inves
ll amount (

he invoice]. 
offered open
alue of the s

ough trade re
finance wit
e economy t
resses the is
tion (on th
of business

data used in
tive in natu
odicals, boo
papers) inc

e receivable
websites; etc

y known a
The data fro
pt and modu

ilateral age
on of TRX 

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

(financer/in
es, the invo
tor (the con
of finance,

ng with the 
cost on the

ncing throug
ors can par
rs provide f

firm. So, a
ers (investo

voice throug
stors (indiv
(of the inv
 In this sen
nly to the in
share.  

eceivable ex
th trade re
that acceler
ssues like in

he part of b
s, access to

n the study a
ure. More th
oks, etc. ha
clude Worl
e platforms w
c.  

as trade re
om these p
us operandi 

encies, an
in Banglade

ccounting 
946-052X 
15, No. 1 

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nvestor). 
ices can 

ncern on 
, i.e. the 

help of 
e part of 

gh trade 
rticipate. 
financial 
as many 
ors) can 

gh trade 
idual or 

voice) is 
nse, this 
nvestors 

xchange 
ceivable 
rates the 
nclusive 
both the 

o finance 

are from 
han 100 

ave been 
ld Bank; 
working 

ceivable 
latforms 
of TRX 

d other 
esh.  



 

 

4. Find

Based o

4.1 Con

TRX is
CMSM
The obj
the one
invoice
been us

In a brie
Trading

 A 
trading

 On
invoice
maximu

 Th
the exc

 Th
certain 

 Wh
exchan

A comp

(i) Buye

(ii) CM
by due 

(iii) Bu
CMSM

(iv) Re
bidding

(v) Vari

(vi) CM
auction 

dings and D

on the objec

ncept of TRX

s deemed t
MEs to post t

jective of th
s available 
s are legitim

sed before to

ef way, as p
g Explained

supplying 
g exchange

nce approve
e. The mon
um amoun

e due proc
change, wh

e firm (su
 percentag

hen the end
nge makes t

prehensive f

er corporate

MSME deliv
date.  

uyer corpora
ME, posts the

ceivables o
g and financ

ious bids su

MSME eval
closes at th

Discussion 

ctives of the

X: How Doe

o bring bu
their receiva
he bidding m
to them con
mate, have 
o obtain fin

per step by s
d, 2021): 

firm appli
.  

ed, a client
netary valu
t.  

cess of the 
here multip

upplying fi
e of the inv

d debtor (th
the remain

functional d

e sends purc

ers the good

ate accepts 
e accepted b

of CMSME
ciers submit

ubmitted by

uates the o
he expiry of

           

e study, the 

es TRX Wor

uyers, suppl
ables, buyer
model is to 
nventionally
been appro
ancing from

tep procedu

ies online 

t bank acco
ue of the i

exchange 
le investor

rm) receiv
voice value

he buyer) p
ing balanc

definition of

chase order 

ds or servic

the goods 
bill on the T

E from buye
their online

 financiers b

ptions and 
f specified p

            43

findings are

rk? 

liers, and f
rs to approv
enable CM
y. A due fra
oved accord
m another le

ure, the mod

to become

ount is set
invoice ma

verifies th
rs buy slice

ves funds i
e (say, 90%

pays its in
e available

f TRX is as 

to CMSME

ces as per th

or services
Trade Receiv

er corporate
e bids to the

become ava

accepts a b
period.  

Asian

            

e as follows

financers to
ve invoices,

MSMEs to ac
aud-checkin
dingly by th
ender (Wass

dus operand

e an appro

 up and th
ay vary fro

he invoice. 
es of the in

in its acco
%) within 2

voice into 
e to the firm

follows (Re

E.  

he requirem

s and based
vables Exch

e become a
e TRX.  

ailable to th

bid. If it do

n Journal of F

            

s:  

ogether in o
, and financ
ccess funds 
ng mechani
he buyer an
s, 2019).  

i of TRX is 

ved memb

e supplyin
om a minim

Once veri
voice. 

ount as an 
24-48 hours

the client 
m, minus th

eserve Bank

ments along 

d on instruc
hange (TRX

available to

he CMSME.

oes not exer

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

one place a
cers to bid o
s at lower ra
ism ensures
nd have not

as follows 

ber of the 

ng firm can
mum amou

ified, it is 

 advance 
s. 

bank acco
heir fees. 

k of India, 2

with bill to

ction receiv
X).  

o the financ

.  

rcise its opt

ccounting 
946-052X 
15, No. 1 

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allowing 
on them. 
ates than 

that the 
already 

(Invoice 

invoice 

n sell an 
unt to a 

sold on 

up to a 

unt, the 

2014):  

o be paid 

ved from 

ciers for 

tion, the 



 

 

(vii) Wh
all conc
bill thro

(viii) Pa
CMSM

(ix) On 

Based 
function
same is

Source:

4.2 Glo

Many c
neighbo
incorpo
(Klappe
platform
adoptin
Enterpr
incorpo
countrie

USA  

Back to
exchang
LiquidX

hen CMSM
cerned part
ough the TR

ayment is m
ME about the

due date, b

on the pra
nal definitio
 given in Fi

:  The A

obal Practic

countries h
oring countr
orated by M
er, 2005; Kl
ms) in Indi
ng this mo
rises) mark
orated this f
es is given b

o more tha
ge started t
X) was laun

ME accepts t
ies viz, CM

RX.  

made by the
e same to TR

buyer corpor

actices of 
on of TRX
igure 3.  

Fi
Author (202

ce of TRX 

have adopte
ry, India, ha

Mexican Dev
lapper, 200
ia. United A
del of fina

ket.  Unite
financing lo
below:   

an a decade
the journey
nched as a

           

the bid of a 
MSME, buy

e financier t
RX.  

rate directly

different in
X has been p

igure 3.  
1) with the 

ed and/or a
as incorpora
velopment B
6). There ar
Arab Emira
ancing to 

ed Kingdom
ong before. 

e, the trade
y. In the U
an alternativ

            44

financier, a
yer corporat

to CMSME

y pays to the

nvoice trad
provided ab

Modus Ope
Aid of TRe

adapted thi
ated this fin
Bank – the s
are three (03
ates (UAE)
cater their 

m (UK), U
A brief on

e receivable
USA, in 200

ve to facto

Asian

            

an online in
te and finan

E and intima

e financier. 

ding platfor
bove and a

erandi of TR
eDs Platform

is financing
nancing in 2
state-owned
3) such kind
), a global 

MSMEs 
United Stat
n the practic

e finance m
07, the Rec
oring, anoth

n Journal of F

            

ntimation is 
ncier about 

ation is give

 

rms in diff
graphical 

RX 
m, India (20

g modality.
2015. India f
d Nacional F
d of exchan

trade hub,
(Micro, Sm
tes of Am
ce of this fi

market thro
ceivable Ex
her mode o

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

sent by the 
the discou

en by finan

fferent coun
presentation

017) 

. For instan
followed th
Financiera (

nges (also kn
, is on the 
mall, and M

merica (USA
financing ac

ough the or
xchange (no
of trade re

ccounting 
946-052X 
15, No. 1 

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TRX to 
unting of 

ncier and 

ntries, a 
n of the 

 

nce, the  
he model 
(NAFIN) 
nown as 
way of 

Medium 
A) have 
cross the 

rganized 
ow it is 
ceivable 



 

 

finance
The foc
sources

In 2011
of finan
finance 

UK  

In UK,
receivab
2017, it
is the w

ii. Anot
2012 t
receivab

iii. Still
by form
SME cl

Sloveni

The firs
is locat
Exchan
After de
attracte
invested
in Nove

By May
and reac

Withou
France,
receivab

India  

In India
Ltd (RX
M1 Xch

On De
Receiva

 

. It was bas
cus of Liqu
s of finance 

1, another tr
ncing invoi
the receiva

 in 2010, 
bles with bi
t expanded 

world’s large

ther trade re
o provide 
bles.  

l another Br
mer Morgan
lients in the

ia 

st organized
ted in Ljub

nge was con
eveloping a
d the attent
d 150.000 E
ember, 2015

y 2016, The
ched a total

ut UK, there
 Spain, Sw
ble trading 

a, there are 
XIL), (ii) T
hange).  

cember 1, 
able Exchan

sed in New
uidX was on
from banks

rade receiva
ices of sup
ables of both

Market Inv
idding in th
its portfolio
est invoice 

eceivable ex
cash supp

ritish trade 
n Stanley an
ir book or p

d exchange 
bljana, the 

nceived by tw
a pilot tradin
tion of busi
EUR of seed
5 (Conda, 2

e Invoice E
l of 3.25 mi

e are many 
weden, etc
market in n

three such 
TReDS Ltd 

2016; Res
nge of India

           

York. It w
n small firm
s, NBFIs, an

able exchang
pplying firm
h the small 

voice starte
he auction m
o remarkab
trading plat

xchange gia
port to the

receivable 
nd HSBC e

portfolio and

for trading 
capital ci

wo entrepre
ng platform
iness angels
d equity to k
021).  

Exchange ha
llion EUR o

trade receiv
. in Europ

non-UK Eur

markets or 
(Known as

serve Bank
a Limited (RX

            45

was a subsid
ms since th
nd other for

ge player n
ms by acqu
suppliers an

ed business 
mode as like
ly with incr
tform.  

ant in UK n
e small su

exchange p
executives. 
d in 2017 th

B2B receiv
ity of Slov
eneurs name

m and testing
s Peter Rib
kick-start th

ad over 190
of receivabl

vable excha
pe.  Statist
rope over th

platforms n
s Invoicema

k of India,
RXIL) as Ind

Asian

            

diary of The
he large one
r their suppl

amed NYSE
uiring a sha
nd large cor

of financi
e as the con
reasing tren

named Platf
uppliers aga

player name
As of 2016

hey secured

vables is Inv
venia. The 
ed Marko R
g it with pro
arič and Jan
he project. I

0 registered
les traded on

anges in dif
ta (2021) p
he years 201

namely (i) R
art), and (iii

 the centra
dia’s first rec

n Journal of F

            

e New Orle
es (firms) h
y chain (Ch

E Euronext s
are in Liqui
rporate supp

ng through
nventional s
nd as of tod

form Black 
ainst their 

ed Aztec Ex
6, they repo
place in the

voice Excha
idea of es

Rant and To
ospective cl
nez Klobča
Invoice Exc

d clients – e
n the platfo

fferent coun
presents a 

13-2018 as s

Receivables
i) Mynd So

al bank of
ceivable exc

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

eans Exchan
have the alt
hatnani, 201

started the b
uidX. They 
pliers.  

h discountin
stock excha

day. Market

k started bus
outstandin

xchange wa
orted havin
e list of For

ange in Slo
stablishing 

omi Šefman
lients, the c
ar who in la
change wen

exchange m
orm (Conda,

ntries such 
robust gro

shown in Ta

s Exchange 
olutions (Kn

f India, au
change. RX

ccounting 
946-052X 
15, No. 1 

think.org/  

nge, Inc. 
ternative 
18).  

business 
used to 

ng trade 
ange. By 

Invoice 

siness in 
ng trade 

as set up 
ng 6,000 
rbes.  

venia. It 
Invoice 
in 2011. 

company 
ate 2014 
t on live 

members, 
, 2021). 

as Italy, 
owth of 
able 1.  

of India 
nown as 

uthorized 
XIL is 



 

 

Table 1
        

Source:

promote
instituti
India L
include 
ICIC Se

Another
Limited
Invoice
2019). 

The thi
Solution
technol

The gov
exchang
Ministry
02, 201
2013 w
availabl
get the
supplier

In respo
econom

India h
Develop
Cadena

United 

In Unite
Dhabi C

 

Year 
2013 
2014 
2015 
2016 
2017 
2018 

.  Value
          

:  Statis

ed by Sma
ion of prom
Limited, the

State Bank
ecurities Lim

r trade rece
d (a joint 
emart was g

 

ird trade re
ns, a global
ogy, and co

vernment of
ge platform
y) vide its 
8 has mand

with a turnov
le audited f

emselves re
rs (Rao & G

onse to the
my registered

has develop
pment Bank

as Productiv

Arab Emir

ed Arab Em
Commercial

e of Invoice
           

sta (2021) an

all Industri
moting and 
e premier s
k of India (S
mited (Sam

eivable exc
venture be

given on Ju

eceivable e
l service pro
onsulting. It

f India has t
m. Their M
Notification

dated all com
ver of more 
financial sta
egistered on
Gupta, 2021

e above step
d a bullish t

ped this m
k – the sta

vas (RBI, 20

rates 

mirates (UA
l Bank (AD

Value
1.2 
8.8 
89.5 
278.7
604.3
803 

           

e Trading in
           

nd Author’s

es Develop
financing M

stock excha
SBI), ICICI 

mie, 2017).  

change of I
tween Axi

une 29, 201

exchange o
ovider in fin
was launch

taken steps 
Ministry of 
n (MSME N
mpanies (la
than Rs. 50
atements an
n the TReD
; Chatnani,

ps of Indian
trend as dep

arket with 
ate-owned N
014).   

E), a global
DCB) are wo

e 

7 
 

            46

n Europe (Ex
           

s Calculatio

pment Bank
MSMEs in
ange in In
Bank, YES
   

India is Inv
s Bank an
7 and it w

f India is 
nance and a
hed on 7th A

further to e
f Micro, Sm
Notification
arge corpora
00 Crore (R
nd all Centr
Ds Platform
 2018). 

n governme
picted in Ta

the help o
Nacional Fi

l trade hub, 
orking toget

Asian

            

xcept) UK: 
          

on (2021) 

k of India 
n India, and
dia. Other 

S Bank, SBI

voicemart. I
nd mjunctio
ent on live

M1 Xchang
accounting, 
April 2017 (

expedite the
mall and M
n) bearing S
ates) registe

Rupees Five 
ral Public S
m to ensur

ent, the trad
able 2.  

of the mod
inanciera (N

Abu Dhabi
ther to launc

Comp

132.8

n Journal of F

            

2013 to 201
           

(SIDBI), 
d National S

joint inves
I Capital M

It is promo
on services)

on July 5,

ge. It is p
human reso

(M1 Exchan

e operation o
Medium En
S.O. 5621(E
ered under t
Hundred C

Sector Ente
re cash liq

de receivab

del incorpo
NAFIN) - w

i’s financial
ch a trade re

pound Gro

83% 

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

18 
   In Milli

the apex f
Stock Exch
stors behin

Markets Limi

oted by A. 
s). The lice
, 2017 (Nar

promoted by
ources, info
nge, 2021). 

of trade rec
Enterprises 
E) dated No
the Compan

Crore) as per
erprises (CP
quidity for 

bles market 

orated by M
which oper

l free zone a
eceivable ex

owth Rate 

ccounting 
946-052X 
15, No. 1 

think.org/  

ion USD 

financial 
hange of 
d RXIL 
ited, and 

TReDS 
ense for 
rayanan, 

y Mynd 
ormation 

    

eivables 
(MSME 
ovember 
nies Act, 
r the last 
PSEs) to 

MSME 

in their 

Mexican 
rates the 

and Abu 
xchange 



 

 

Table 2
      
Particul

Disburse

Number

(Trade R

Discoun

Number

Banks/N

Participa

Number

Buyers (

Number

Vendors

Source:
Note:  

market.
Receiva
for the 
have th
legitima
launder
authorit

4.3 App

Banglad
maintai
econom
econom
literacy
poverty
(COVID

Banglad
2030 (W
capital 
graduat
Howeve
2021). 
CAGR 

2.  Perfor
         
lars 

ement Amou

r of Invoices 

Receivables) 

nted  

r of 

NBFIs 

ated  

r of Corporat

(Debtors) 

r of MSMEs 

s (Suppliers) 

:  Naray
 1 Cro

 They are r
ables Excha
MSMEs at 
e deliberate
acy of the in
ring activitie
ties of Hong

plication of 

desh is bec
ined an imp

my has grow
mic growth. 
y, and per c
y since 199
D-19).   

desh is the 
World Econ
income, hu

tion to be u
er, due to 
In 2019, th
of 11.32% 

rmance of T
         

March

2018 

unt 315 

2,532 

14 

te 47 

201 

yanan (2019
ore = 10 Mil

replicating 
ange. The U

a lower co
e plan and m
nvoices (tra
es, double f
g Kong and

TRX in the 

coming a n
pressive trac
wn at nearly

Poverty dro
apita food 

92 (Note 3)

39th larges
nomic Foru
uman assets
upper-midd
Corona pan

he economy
over last 10

           

Trade Recei
         

M1X

h 31, Mar

2019

2,614

34,04

24 

200 

1285

9); Author’s
llion   

India’s M1
UAE govern
ost than the 
mechanism 
ade receivab
financing o

d Singapore 

Context of B

new model
ck record o

y 6% per ye
opped by ne
intake. Mor
). All these

t economy 
um, October
s index, eco
le income c
ndemic, thi
y registered
0 years since

            47

ivable Exch
         

Xchange 

rch 31, 

9 

Gr

4 730

44 1,2

71%

326

5 539

s Calculatio

xchange. T
nment inten
same of th

for the frau
bles). They 
of the invoic

to set their 

Bangladesh

l for devel
on growth a
ear, and hum
early a third
re than 15 

e are the c

in the worl
r, 2019). It
onomic vuln
country by 
s transition

d growth at 
e 2010 as sh

Asian

            

hanges in In
        In

rowth M

2

0% 4

245% 1

% 1

6% 3

9% 3

on   

This market 
nds to do it
he sources a
ud checking 
also have se
ces. They a
trade receiv

h 

lopment (B
and develop
man develop
d, coupled w
million Ban
ondition ex

ld. It will be
t has fulfille
nerability in

2024 (Wo
n time has 

10.41% on
hown in Fig

n Journal of F

            

ndia 
n Crore INR

I

March 31, 

018 

15 

4,304 

0 

2 

10 

will be nam
 to pave th

available co
to ensure th

et procedure
are working 
vable excha

Bird, 2021).
pment. In th
pment went
with increas
ngladeshis h
xcluding the

e the 24th l
ed all three
ndex) and i
orld Bank, 1
been exten
n year over
gure 4.  

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

Rs (Indian R
Invoicemart

March 

31, 2019 

2,712 

1,83,088 

24 

259 

1802 

med as UA
he access to
onventionall
he genuinen
es to protec

g with the m
ange (Wass,

. The coun
he past dec
t hand-in-ha
sed life exp
have move
e pandemic

largest econ
e requireme
is now on t
15 October

nded till 20
r year basis

ccounting 
946-052X 
15, No. 1 

think.org/  

Rupees) 

t 

Growth 

  553% 

1,180%  

   140%  

   709%  

   481%  

AE Trade 
 finance 
ly. They 
ness and 

ct money 
monetary 

 2019). 

ntry has 
cade, the 
and with 
ectancy, 
d out of 
c period 

nomy by 
ents (per 
track for 
r, 2019). 
26 (Jha, 
s having 



 

 

Source:
Note:  

To mee
GDP gr
public a
inclusiv
To sus
urbaniz
impacts
strength
financia
urban m
powerh
digits o

The ind
namely 
the eco
generat
the priv
most do
Associa
capital, 
Banglad
Daily S

Under t
prospec
and (iv)

4.3.1 Pr

The ma
of this c

:  Autho
Data o
2021]

et its target 
rowth at aro
and private 
ve through c
stain accele
zation proce
s. At the s
hen revenu
al-sector an
managemen

house, with 
n a sustaine

dustries in 
cottage, m

nomy and d
e more than

vate sector. 
ominant is c
ation (MIDA

in the peri
desh, 50% o

Star, 2019). 

the above co
ct of TRX, 
) identificat

rospect of T

arket of TRX
credit transa

0.00

100.00

200.00

300.00

400.00

G
D

P
 in

 U
S

D
 B

il
li

on

F
or’s Calcula
of 2020 No
]. However,

of becomin
ound 9% pe
investment 

creation of p
erated and
ess more ef
same time 
ue mobiliza
d external t

nt; and ada
its labor-in

ed basis. 

Bangladesh
icro, small,
driving forc
n 90% of al

 These ind
capital short
AS), 51% o
iod of 2008
of CMSME
 

ondition of 
(ii) readine

tion of the s

TRX 

X depends 
actions is de

115.28 128.68

2010 2011

           

Figure 4.  
ation Using 
t Yet Publis
 statista.com

ng the 24th
er year base

will need t
productive 

d inclusive 
ffectively, a
Bangladesh

ation; tack
rade reform

apting to cl
ntensive ma

h are made
 and mediu
ce of solvin
ll business 
dustrial uni
tage. Accor
of SMEs clo
8 to 2012 i

Es acutely fa

the econom
ss for TRX
takeholders

on B2B (bu
epicted here

8 133.36 149

2012 20

            48

Banglade
World Ban

shed on the 
m (2021) m

h largest eco
d on accele
to increase a
employmen

growth, B
as well as p
h will need

kle energy 
ms; improvin
limate chan
anufactured

e up of ma
um enterpris
ng the unem
activities an

its suffer fro
rding to the 
osed due to
in the deve
ace the capi

my, the appl
X, (iii) exist
s.   

usiness to b
e with few i

9.99 172.89

013 2014

Yea

Asian

            

sh Economy
k Data (202
Same Sourc

mentions GD

onomy by 2
erated expor
as well. Gro
nt opportuni
Bangladesh
prepare for 
d to maint

and infra
ng labor ski
nge. Bangla
d and servic

ainly of sm
ses that are 
mployment 
nd provide 
om many fo
survey of M

o the lack o
eloping eco
tal shortage

lication of T
ing market 

usiness) tra
instances: (i

195.08 221.42

2015 2016

ar

n Journal of F

            

y 
20). 
ce [Accesse

DP in 2020 a

2030 it will
rt and remit
owth will al
ities in the d

h will nee
adaptation

tain macroe
structure d
ills, econom
adesh can 
ce exports 

mall manufa
considered 
problem of
two out of 
olds of prob

Medium Ind
of capital, p
nomies (UN

e for running

TRX may b
scenario in

ansactions o
i) governme

2
249.72 274

2017 20

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

ed 20 Febru
as $338.39 b

l require in
ttance grow
lso need to 
domestic ec

ed to man
n to climate
economic s
deficits; de

mic governan
become an
growing at

acturing com
as the back

f the countr
every three
blems in w

dustry Deve
articularly w
NCTAD, 2

ng the busine

be justified u
n terms of F

on credit. Th
ent procurem

4.04
302.57

018 2019

ccounting 
946-052X 
15, No. 1 

think.org/  

 

uary 
billion.   

creasing 
wth. Both 

be more 
conomy. 
age the 

e change 
stability; 
eepening 
nce, and 
n export 
t double 

mpanies 
kbone of 
ry. They 
e jobs in 

which the 
lopment 
working 
001). In 
ess (The 

under (i) 
FinTech, 

he space 
ment, (ii) 



 

 

purchas
exchang

i. Gove

The tot
2020 (N
cash. It 
so on. I
form. 

ii. Purc

Banglad
sectors 
agricult
maintai
income
in recei
2018 - 2

iii. Pur

The pri
carries 
remains
from ve
60, 90, 
total pu
(DSE) 
shown i

Table 3
      
Fiscal Y
2014-15
2015-16
2016-17
2017-18
2018-19

Source:
Note:  

The sce
compan
listed c

se of state-o
ge(s), (iv) G

ernment Pr

al amount o
Note 4). (W
remained i

In other wo

chase of SO

desh Econo
(such as 

ture; constru
ining nation
. These pur
vable form.
2019.  

chase of th

ivate sector
a large am

s in the form
ery short tim

120, 180 d
urchase in 2
from the to
in DSE web

.  Good
         
Year 
5 
6 
7 
8 
9 

:  Bangl
1 Cro
Bangl

enario is s
nies are 598
ompanies, 

owned ente
GDP Scenar

rocurement

of procurem
World Bank,

n receivabl
ords, in the e

OEs 

omic Review
industry; p
uction; serv
nal produc

rchases mos
.  Table 3 d

he Listed Co

r carries alm
mount of bu
m of trade r

me period su
days, and so
2020 (Note 
op 20 best 
bsite (DSE, 

ds and Servi
         

Amo
1270
1140
1266
1549
1615

ladesh Econ
ore = 10 Mi
ladesh Bank

such that th
8 (Note 6) 
the volume

           

rprises’ (SO
rio.  

t  

ment of Ban
, 2020). Mo
e (invoice) 
economy, a

w (2020) sta
power, gas 
vices) condu
ctivity, valu
stly take pla
depicts a pu

ompanies  

most 85% o
usiness activ
receivables 
uch as seven
o on (Klapp
5) of top fi
performing
2021).  

ces Purchas
         

ount 
014.54 
077.15 
643.24 
985.90 
553.65 

nomic Revie
llion; 1USD
k, the Centr

here are su
(including 

e becomes a

            49

OEs), (iii) p

ngladesh go
ostly, this a
form for a 

a large amou

ates that sta
and wate

uct a signif
ue addition
ace on credi
urchase reco

 

of the deve
vities on cr
in the econ

n (07) days 
per, 2005). 

five (05) list
g companie

sed by the N
         

Compo

6.20% 

ew - 2020, M
D = BDT 84
ral Bank of 

uch 20 top
20 top one

a gigantic o

Asian

            

purchase of 

overnment s
amount of p
time such a
unt of mon

ate-owned e
r; transpor

ficant amou
n, employm
it that also k
ord of SOEs

lopment ac
redit. That 
nomy. The 
or 15 days 
For instanc

ted compan
s is given 

Non-Financi
         

ound Growt

Ministry of F
4.80 as on 1
Bangladesh

performin
es). If we c
one that rem

n Journal of F

            

f listed com

stood aroun
procuremen

as 30 days, 6
ey remained

enterprises (
t and com
nt of purch

ment genera
keep a large
s over the y

tivities of t
is, a large 
ages of the
to long-term
ce, an appr
nies in Dhak
in Table 4 

ial SOEs 
         
th Rate 

Finance 
18 February
h  

g compani
consider the
mains tied i

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

mpanies in th

nd $25.00 b
nt was not 
60 days, 90
d tied in re

(SOEs) in d
mmunication
hases every 
ation and 
e amount o

years 2014 -

the country
amount of

ese receivab
m period su
roximate am
ka Stock Ex
based on 

   In Cror

y, 2021; Sou

es and tota
e purchase 
in receivab

ccounting 
946-052X 
15, No. 1 

think.org/  

he stock 

billion in 
made in 

0 days or 
ceivable 

different 
n; trade; 
year for 
revenue 
f money 
 2015 to 

y. It also 
f money 
bles vary 
uch as 30, 
mount of 
xchange 
the data 

re BDT 

urce: 

al listed 
of total 

le form. 



 

 

The tim
can rele

Table 4

S/L No. 

1 

2 

3 

4 

5 

Total 

Source:
*   
**  

Based o
market 

iv. GDP

Beyond
purchas
are not
activitie
depicted

Table 5
27 cror
2011-20
mllion) 
period, 
million)
analogy

 

me cost or ec
ease this fun

4.  Total 

Name of the 

Bangladesh 

Company Ltd

British Am

Bangladesh C

Beximco Phar

Robi Axiata L

Summit Powe

:  Dhak
 Data o

The c
from 

on governm
space for T

P Scenario 

d the transac
se; a large a
t listed in t
es on credit 
d in Table 5

5 shows that
re (270 mi
012 to 2019
to maximu
the averag

) to maximu
y for a mark

conomic va
nd remainin

Purchase S

Company 

Export Imp

d.  

merican Toba

Company Limite

rmaceuticals Lt

Ltd. (Q3)* 

er Ltd.  

a Stock Exc
of Q1 were 
calculation 
the sales rev

ment procur
TRX is depic

ctions unde
amount of B
the exchang
can be gras

5.  

t per day ec
illion) to m
9-2020 in di
um BDT 74
ge daily ec
um BDT 89

ket of TRX. 

           

lue of this c
ng in inactiv

Size of Five 

Q1 Purc

(In BDT

Million)

port 

6,207.45

cco 

ed 17,193.5

td. 6,579.63

18,370.5

11,701.1

60,052.3

change [Acc
not availab
was based 
venue to ge

rement, SO
cted in Figu

er governme
B2B transac
ges or own
sped throug

conomic ac
maximum B
ifferent sect
17 crore (74
conomic ac
92 crore (89

    

 

            50

colossus am
ve form. It g

DSE-Listed

chase** 

T 

) 

Q1

(In

5  62

58  17

3  65

55  18

5  11

37  6,0

cessed 2 Feb
ble. 

on the sal
et the purcha

OEs’ purcha
ure 5.  

ent procure
ctions also t
ned by the 
gh per day G

ctivities in t
BDT 1459 
tors totaling
4170 millio

ctivities sto
920 million)

Asian

            

mount of mo
glimpses the

d Companie

1 Purchase 

n BDT Crore) 

0.745 

19.358 

7.963 

37.055 

70.115 

005.24 

bruary, 202

les turnover
ase volume

ase, and lis

ment, SOE
take place o
governmen

GDP activiti

he economy
crore (145

g from mini
on) as depict
od from m
) as shown 

n Journal of F

            

oney is a sig
e space for t

es  

Annual 

Purchase (I

BDT Millio

24,829.81  

68,774.34  

26,318.53  

73,482.20  

46,804.60  

240,209.48 

21]  

r. There wa
.    

ted compan

s’ purchase
on credit am
nt. The vol
ies in the ec

y ranged fro
590 million
imum BDT 
ted in Figur

minimum B
in Figure 7

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

gnificant. T
the market o

In 

on) 

Annu

Purch

(In B

2482.

6877.

2631.

7348.

4680.

24,02

as a 5% de

nies’ purch

e, listed com
mong the fi
lume of su
conomy (No

rom minimu
n) over yea
T 2274 crore
re 6. Over t

BDT 50 cro
. All these m

ccounting 
946-052X 
15, No. 1 

think.org/  

The TRX 
of TRX. 

ual 

hase 

BDT Crore) 

.981 

.434 

.853 

.22 

.46 

20.95 

eduction 

hase; the 

mpanies’ 
rms that 

uch B2B 
ote 7) as 

um BDT 
ars from 
e (22740 
the same 
ore (500 
make an 



 

 

 

 

 

 

 

Source:
Note:  
 
Table 5
      
Sector 

1. Agricul

2. Fishing

3.Mining 

4.Manufac

5.Electrici

6. Constru

7.Wholesa

8.Hotel an

9.Transpo

Communi

10.Financ

11.Real E

12.Public 

13. Educa

14.Health 

15.Comm

Source:
Note:  

T

2,120,

(Gov

:  The A
 1USD

5.  Daily
         

lture and Forest

g 

and Quarrying 

cturing 

ity, Gas and Wa

uction 

ale and Retail T

nd Restaurants 

ort, Stora

ication 

cial Intermediati

state, Renting a

Administration

ation 

and Social Wo

munity, Social an

:  Bangl
(i) Ca
numb
1USD

Supplying

(Selling F

Trade Receiva

,000,000,000.

vernment Proc

Figu
Author’s Ca
D = BDT 84

y Business A
         

try  

ater Supply 

Trade 

age & 

ions 

and 

n 

orks 

nd Personal 

ladesh Econ
alculated by
ber of days i
D = BDT 84

g Firms 

Firms) 

ables of BDT 

00 Remain Un

curement in 20

           

ure 5.  Sc
lculation (2

4.80 as on 1

Activities in
         
2011- 

2012 

2012

2013

386 413 

88 103 

46 54 

466 548 

39 46 

190 229 

382 429 

27 31 

313 345 

101 117 

191 219 

93 105 

70 79 

56 66 

326 386 

nomic Revie
y dividing an
in a year. (ii
4.80 as on 1

npaid 

020) 

Tra

Trade 

1,6

 (49 

            51

 
 
 
 

 

cenario of T
2021) Using
8 February,

n the Econom
         

2- 

3 

2013- 

2014 

455 

118 

59 

620 

51 

252 

479 

36 

373 

135 

253 

124 

91 

75 

435 

ew - 2020, 
nnual GDP 
i) * means p
8 February,

ade Receivable

Outstandi

e Receivables 

15,536,500,00

State Owned 

Asian

            

Trade Receiv
g Respective
, 2021; Sour

my       
At Current 
2014- 

2015 

2015

2016

490 529 

132 147 

66 79 

707 820 

55 66 

301 351 

535 595 

41 47 

417 470 

155 177 

295 344 

141 185 

105 129 

84 97 

490 540 

Ministry of
by 360 day

provisional(
, 2021; Sour

Tr

143,645,

(598 L

es Remain 

ing 

of BDT 

00.00 

Firms) 

n Journal of F

            

vable 
e Data Sour
rce: Bangla

        
Market Pri

5- 

6 

2016- 

2017 

571 

166 

95 

950 

73 

406 

678 

54 

520 

203 

401 

218 

158 

108 

595 

f Finance 
s considere
(iii) 1 Crore
rce: Bangla

rade Receivab

266,648,000.0

Listed Compa

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

rces Cited. 
adesh Bank 

ices, In Cror
2017- 

2018 

2018

2019

632 689 

186 206 

108 122 

1123 1337

81 89 

472 546 

777 896 

61 70 

568 628 

233 262 

462 529 

251 275 

179 203 

122 144 

657 725 

ed as financi
e = 10 Millio
adesh Bank 

Conglom

(Buying 

bles of BDT 

00 Remain Un

anies’ Purchas

ccounting 
946-052X 
15, No. 1 

think.org/  

 

re BDT 

8-

9 

2019-

2020* 

737 

229 

131 

7 1459 

95 

623 

1001 

79 

691 

281 

590 

311 

227 

163 

800 

 

ial 
on; 
      

merates 

Firms) 

npaid 

se) 



 

 

Source:

Figur
Source:

Note:  

4.3.2 Re

The rea
regulato
to TRX

i. Techn

The fun
Informa
indicate

The gov
into “D
implem
of (i) m

200

400

600

800

C
ro

re
s 

in
 B

D
T

1

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t C

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re

nt
 M

ar
ke

t P
ri

ce
s

In
 B

D
T

 C
ro

re

Fig
:  The A

re 7.  Ave
:  Autho

2020,
(i) AF
Manu
WRT
Storag
Rentin
Work
(ii) 1U

eadiness for

adiness refe
ory issues f

X is as follow

nology Base

nction of fi
ation and C
es the status

vernment of
Digital Ban
mented in thi
making peop

2774

0

00

00

00

00

2011-2012

545

0

200

400

600

800

1000

AF

gure 6.  T
Author’s Ca

erage Daily 
or’s Calcula
, Ministry o
F: Agricultu
ufacturing; E
: Wholesale
ge & Comm
ng; PA: Pub

ks; CSP: Com
USD = BDT

r TRX 

ers to the p
for TRX. Th
ws:   

ed Prepared

inancing th
Communicat
s of ICT of t

f the countr
gladesh” b
is motto an
ple skilled i

3170

2012-2013 2

153 85

8

F MQ M

           

Total Daily 
lculation us

Business A
ation (2021)
f Finance 

ure and Fore
EGWS: Ele
e and Retail
munication; 
blic Admini
mmunity, S
T 84.80 as o

reparedness
he present s

dness  

hrough TRX
tion Techno
the country 

ry is pro-IC
y 2021. A
d many are
in ICT, (ii) 

3556 40

013-2014 2014

892

66

37

M EGWS C

            52

Economic A
sing Data of

Activities in 
) Using Dat

estry; F: Fis
ectricity, Ga
l Trade; HR
FI: Financi

istration; E:
Social and P
on 18 Febru

s of the cou
status of tec

X is mostly
ology (ICT)
(Note 8).  

CT. The visio
A lot of pro
e in the proc

ensuring c

014
4576

4-2015 2015-20

Financial 

74

641

50

C WRT HR

Secto

Asian

            

Activities (I
f Banglades

the Econom
ta from Ban

hing; MQ: M
s and Water

R: Hotel and 
ial Intermed
 Education;
ersonal. 

uary, 2021; S

untry in ter
chnology an

y dependent
). So, the te

on of the go
ojects and 
cess to build
connectivity

6
5196

016 2016-2017

Year

0

481

185

R TSC FI

ors

n Journal of F

            

In Crore BD
sh Economic

my: 2011-20
ngladesh Eco

Mining and
r Supply; C
Restaurant

diations; RE
; HSW: Hea

Source: Ban

rms of (i) te
nd regulator

t on techno
echnology b

overnment i
programs h

d the nation
y for people

5912

2017-2018 2

365

189

RER PA

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

DT) 
c Review (2

012 to 2019
onomic Rev

d Quarrying
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ts, TSC: Tra
ER: Real Es
alth and Soc

ngladesh Ba

echnology, 
ry issues in 

ology, speci
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is to turn th
have alread

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6721
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2018-2019 201

138 102

EGWS HSW

ccounting 
946-052X 
15, No. 1 

think.org/  

 

2020). 

 

9-2020 
view - 

; M: 
ion; 

ansport, 
tate, 
cial 

ank 

and (ii) 
relation 

ially the 
aredness 

he nation 
dy been 

ur pillars 
orner of 

7417

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550

CSP



 

 

the cou
digitiza

For bui
some o
(Bangla
2021; U

Banglad
hi-tech 
the cou
employ

Establis
departm

citizens,

Control
of ICT d

Banglad
by the 
mileston
projects
(Tier-IV
Innovat
Island M
Block c
Learnin
Security

ii. Regu

The re
regulato
seems t

a) Laws
policies
Some o
amendm
Agency
Hi-Tech
2018; B

b) Laws
in the co

untry, (iii) m
ation, (iv) pr

lding a digi
of the mega
adesh Econo
UNCTAD, 2

desh Hi-tec
park/softwa

untry. BHP
yment, build

shing Depa
ment of ICT w

, promote kn

ller of Certif
division to se

desh Compu
Parliament
ne activitie
s completed
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tion Design
Maheshkhal
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ng, 3-D Pri
y Agency (D

ulatory Issue

gulatory is
ory issues a
to be akin to

s, Acts, Rul
s have been
of them in
ment in 200
y Rules 202
h Park Auth

BCC Act 19

s, Acts, Rul
ountry nam

making pub
roviding req

italized cou
a and notab
omic Revie
2019; UK A

ch Park (BH
are technolo

P was crea
ding an inve

artment of 
was created in

nowledge-bas

ifying Autho
ecure e-comm

uter Counc
t to promot
s to establis
d by BCC i
; Smart Cla
n Entrepren
li (Note 9); 
rnet of Thin
inting, etc.)
DSA); A2i P

es Based Pr

ssues inclu
are divided 
o stock exch

les, Policies
n formulated
nclude: Inf
09 and 2013
20; Digital 
hority 2010
90; etc. (IC

les, Policies
ed Dhaka S

           

blic service
quired servi

untry to adop
ble ICT pro
ew, 2020; IC
Aid, n.d.):  

HP): Bangla
ogy parks, t
ated to pro
estment-frien

f Informatio
n 2013 unde

sed economy

orities (CCA

merce, e-tran

il (BCC): BC
te ICT infr
sh an ecosy
include: Tie

assrooms in 
neurship Ac
Center for 

ngs (IoT), B
); Banglade
Program; et

reparedness

de related 
under two 

hange] (Van

s Related to
d in the coun
formation a
3); Nationa
Security A

0 (with ame
CT Division,

s Related to
Stock Excha

            53

es available
ices to the IT

pt and/or ad
ojects comp
CT Division

adesh Hi-tec
training and

omote IT/IT

ndly econom

on and Co
er ICT divisio

y and good g

A): The CCA

nsaction, and

CC was cre
rastructure 

ystem based
er –III Nat
educationa

cademy (iD
Excellence
Big Data, D
esh Nationa
tc. (Banglad

  

laws, acts
heads: (1) 

nnoni, 2020

o ICT:  Di
untry in diffe
and Comm
al ICT Polic
Act 2018; O
endment in 
, The Peopl

o Stock Exc
ange (DSE) 

Asian

            

e at the doo
T-industries

dapt an incl
pleted by th
n, The Peop

ch Park Aut
d incubation
TES based 
my.  

ommunicatio
on to deliver

overnance in

A was establis

d e-governanc

eated under 
of the cou

d ICT infras
ional Data 

al institution
DEA); “Con
e on Fourth 
Data Analy
al Digital A
desh Compu

s, rules, re
ICT, and (2

0).  

ifferent ICT
ferent times 
munication 

y 2009, 20
One Stop Se

2014) Act 
e’s Republi

hange: The
established

n Journal of F

            

orstep of th
s.  

lusive finan
he governm
ple’s Repub

thority was 
n centers at
hi-teck ind

on Technol
e-services a

n the country

shed in 2011

ce in the cou

the Act No
untry. It ha
tructure. So
Center; Na

ns; 5G-based
nnected Ba
Industry Re

ytics, Machi
Architecture
uter Counci

egulations, 
2) stock exc

T related law
to make the
Technology
15 and 201
ervice Law 
2014; One

ic of Bangla

ere are two b
d in 1954 an

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

he citizens 

nce based ec
ment are as 
blic of Ban

created to e
t different p
dustry, tech

logy (DOIC

at the doorste

y.     

 as an attach

untry.  

o IX of 1990
as complete
ome of the s
ational Data
d Wi-Fi 6 n
angladesh”;
evolution (R
ine Learnin
e (BNDA);
il [BCC], 20

policies, e
change [sin

ws, acts, ru
e country d
y Act 200
18; Digital 

w 2018; Ban
e Stop Serv
adesh; 2021

big stock ex
nd Chittagon

ccounting 
946-052X 
15, No. 1 

think.org/  

through 

conomy, 
follows 

gladesh, 

establish 
places in 
h based 

CT): The 

eps of the 

hed office 

0 passed 
ed many 
strategic 
a Center 
network; 
 Digital 
Robotic, 

ng, Deep 
 Digital 

021).  

etc. The 
nce TRX 

ules, and 
digitized. 
06 (with 
Security 
ngladesh 
ice Law 

1).     

xchanges 
ng Stock 



 

 

Exchan
for func
acts, ru
limited 
of Finan

 New
formula
facilitat

 Lis
receivab
the sam
regard, 
Exchan

 New
be creat

 Reg
Represe
Commi

 The
based o
trading 

4.3.3 Ex

TRX h
innovat
MFS op
bank of

MFS re
unbank
Banglad
(P2B), 
(G2P) 
remittan
to offer
Bank, 2

nge (CSE) e
ctioning of 

ules, and po
to only the

nce; 2021): 

w rules sim
ated for a 
te the establ

sting Regul
bles and pa

me are paya
there is a

nge Ltd.” “T

w regulatio
ted for the S

gulations f
entative to 
ission (Stock

e trading of
on Automat
such as “Dh

xisting Mar

has an akin
tive FinTech
perates unde
f Banglades

efers to br
ed populat
desh Bank 
Business to
payment s
nce coming
r MFSs (UK
2021).     

stablished i
these stock

olicies to es
ese) are her

 

milar to ex
trade recei
lishment of 

lations to b
ayables resp
ables on the
already a r

The Public I

ons like “Se
Settlement o

for Trade 
be create

k Dealer, St

f trade recei
ted Trading
haka Stock 

rket Scenari

n to FinTe
h is depend
er a bank-le
h. Banglade

ranchless b
tion groups
allows Cas

o Person (B
services do
g through ba
K Aid, 201
 

           

n 1995. The
k exchanges
tablish and

re (Banglad

xisting “Th
ivables base
a Commod

be created 
ectively (i.e

e part of bu
regulation 
ssue Rules”

ettlement of 
of Trade Re

Receivable
d as made
tock Broker

ivables will
g of Trade 
Exchange A

io in Terms 

ech (Gombe
dent on mob
ed structure
esh Bank in

banking or 
s at reason
sh in, Cash

B2P), Person
mestically. 
anking chan
7) out of w

            54

ere are man
 and their h

d operate TR
desh Securit

he Securitie
ed seconda

dity Exchang

for the su
e., receivab
uying firms
named “Li

” may also b

f Stock Exc
eceivables E

s Dealer, 
e for stock
r and Autho

l be conduc
Receivable
Automated 

of FinTech 

er et al., 2
bile financi

e under the g
ntroduced M

mobile ba
nable rates 
h out, Perso
n to Gover

However, 
nnel is perm
which 19 ha

Asian

            

ny laws, act
help may be
RX. In this 
ties and Ex

es and Exc
ary market,
ge in the co

upplying fir
les are on t

s) will be tr
isting Regu
be taken int

hange Tran
Exchange Tr

Trade Rec
k market l
orized Repre

cted electron
s to be cre
Trading Re

2017). In B
ial services 
guidance of

MFS in 2011

anking serv
(Medici, 2

on to Perso
rnment (P2G

local disb
mitted. The 
ave launche

n Journal of F

            

s, rules, pol
e taken to fo

regard, few
change Com

change Rul
 i.e. TRX. 
untry.  

rms and bu
he part of s
raded in the
ulations of 
o considera

nsactions Re
ransactions.

ceivables B
like “Secur
esentative) 

nically. The
ated as wa

egulations 1

Bangladesh
(MFS) (M

f Banglades
1.  

vices offere
2021). Und
on (P2P), P
G) and Gov
bursement 
central bank

ed their ope

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

licies in the
formulate ne
w propositio
mmission, M

les 1987” 
 This may

uying firms
supplying fi
e exchange

f the Dhak
ation in this 

egulations 1
. 

Broker, Au
rities & E
Regulations

erefore a re
as created f
999”.  

h, the appr
Medici, 2021

sh Bank, the

ed to bank
der MFS p
Person to B
vernment to
of inward 

nk granted 2
eration (Ban

ccounting 
946-052X 
15, No. 1 

think.org/  

country 
ew laws, 
ons (not 
Ministry 

may be 
y further 

s whose 
irms and 
. In this 
a Stock 
regard.  

1998” to 

uthorized 
xchange 
s 2000”. 

gulation 
for stock 

roach of 
1). Here, 
e central 

ked and 
program, 
Business 
o Person 

foreign 
28 banks 
ngladesh 



 

 

Source:

Note:  

MFS ha
seven y
(Bangla
phenom
Based o
the MF
MFS ex

Though
compon
out, me
bank sh
Februar

4.3.4 Id

Stakeho
achieve
conside
with mo
will be 

Consult
(Mahmu
stakeho
TRX ar
(iv) exte

:  The A

BPS: 
Numb
NOT:
DAT:
in Cro

as grown si
years, the 
adesh Bank

menal growt
on the data a
S market st
xits as show

h the numbe
nent has sho
erchant paym
hows the MF
ry, 2021) pr

dentification

olders refer
ement of th
eration (Fre
ore success
bearing the

ting with th
ud, 2020; 

olders as pr
re categorize
ernal, and (

6 0
-1

1 -6B P S

G
R

O
W

T
H

 R
A

T
E

 I
N

 %

Figu
Author’s Ca

Number of
ber of Regi
: Number o
: Number o
ore BDT.  

ignificantly 
MFS mark

k, 2021). An
th in MFS, 
available at
tands as dep

wn in Table 

er of banks p
own remark
ment, etc. F
FS data on m
roduct wise 

n of the Stak

r to any g
he objective
eman, 2008
 and less co

e ultimate co

he related m
Rahman, 2

rimary and 
ed under th
v) global an

11 13 10 9

A G

December, 20

           

ure 8.  G
lculation us

f Banks Prov
stered Clien
of Total Tr
f Daily Ave

over the pa
ket in Bang
nd after the
cards, and 

t the respect
picted in Fig
6.   

providing M
able growth
inTech mar
monthly bas
performanc

keholders  

group or i
es of an o
8). It is gen
onflict when
onsequences

materials, the
2019; Solaim

secondary 
e headings 
nd/or intern

43

32

15 18 25

R C

17 Decembe

            55

Growth Rate
sing Data of

viding (MF
nts in Lac, 
ransaction; 
erage Trans

ast few year
gladesh has
e outbreak o

other alter
tive webpag
gure 8. As o

MFSs show
h. Based on 
rket shows g
sis. As per t
ce is shown

individual 
organization
nerally argu
n they are l
s of the dec

e study find
man, 2005)
suggested 

of: (i) gove
national.  

32 24

78

26

-7 -7A C N

ITEMS IN MF

er, 2018 Dec

Asian

            

e (in %) of M
f Banglades

FS) Services
AC: Numb
TTT: Tota

saction: AD

rs (UK Aid
s become t
of COVID-
rnative paym
ge of Bangla
of 28 Febru

s the negati
the product

growth as d
the data ava

n in Table 8.

who can a
n and their 
ued that bett
led by the s
cisions (Voi

ds a possibl
). Followin
by Freema
rnment, (ii)

2326

128

2732

O T T T T

FS

cember, 2019

n Journal of F

            

MFS 
sh Bank (20

s; AG: Num
er of Activ

al Transacti
DT: Average

d, 2017; Me
the largest 
19, the cou
ment metho
adesh Bank
ary, 2021; t

ive growth, 
t category su
epicted in T

ailable, the l
. (Banglade

affect or i
forces sho

ter decision
stakeholders
nov & Bous

le list of sta
ng the broa
an (2008), t
) non-govern

20 2627

8

39 32

T D A T

December, 2020

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

021) 

mber of Age
ve Accounts
ion in BDT
e Daily Tran

edici, 2021)
one in th

untry has w
ods (Rashid
k, the growth
the market s

but the oth
such as cash
Table 7. The
latest’ (Janu

esh Bank, 20

is affected 
ould be tak
ns are imple
s, i.e. by tho
squet, 2010

akeholders f
ad classific
the stakeho
rnment, (iii)

19 12
2732 39

A D T

0

ccounting 
946-052X 
15, No. 1 

think.org/  

 

nts; RC: 
s in Lac; 
T Crore;  
nsaction 

. Within 
e world 

witnessed 
d, 2021). 
h rate of 
status of 

her every 
h in, cash 
e central 
uary and 
021).  

by the 
ken into 
emented 
ose who 

0).   

for TRX 
ation of 

olders of 
 internal, 



 

 

Table 6

Source:
Note:  

Table 7

Produc

Inward 
Cash In
Cash O
P2P Tra
Salary D
Utility B
Mercha
Govern
Others 

Source:

i. Gover

The bod
Ministry
(BB), B
Chittag
Investm
Authori
power o

Particu
Number
Number
Number
Number
Number
Total Tr
Number
Average

6.  MFS 

:  Bangl
 (i) 1 L

(ii) Ac
(ii) *A

7.  Produ

cts  

Remittance
n Transactio
ut Transacti

ansaction 
Disburseme
Bill Paymen

ant Payment
nment Paym

 

:  The A

rnment Stak

dies under g
y of Financ

Bangladesh 
ong Stock E

ment Corp
ity (BIDA)
of the state (

ulars 
r of Banks C
r of Agents 
r of Registe
r of Active A
r of Total T
ransaction i
r of Daily A
e Daily Tran

(FinTech) P

ladesh Bank
Lac = 0.10 M
ctual numbe
Account in w

uct Wise Gr

e 
on 
ion  

ent (B2P)  
nt (P2B) 
t  

ment 

Author’s Ca

keholders 

government
ce (MOF), M

Security E
Exchange (C
poration of
, Central D
(PPP) [(Pol

Currently P
 

ered Clients
Accounts in

Transaction 
in Taka (In C
Average Tra
nsaction (In

           

Position in t

k (2021) 
Million and
er of days in
which trans

rowth of MF

Dec.
2017
-43%
20%
20%
31%
73%
2% 
0% 
0% 
3% 

alculation us

t stakeholde
Ministry of 

Exchange Co
CSE), Bang
f Banglad
Depository 
litical Gover

Providing th

s in Lac  
n Lac*  
 
Crore BDT)
nsaction  

n Crore BDT

            56

the Market 

d 1 Crore = 
n month ha
saction mad

FS (2016 – 

.  
7 

Dec
201

% 128
% 2% 
% 12%
% 15%
% 51%

54%
227
413
38%

sing Data of

ers include J
Commerce
ommission 
gladesh Ins
esh (ICB)
of Banglad
rnment], et

he Services 

)  

T)  

Asian

            

10 Million]
s been used

de in last 3 (

2020) 

c.  
18 

De
20

81% -51
19

% 10
% 94
% 64
% 10
7% 41
3% -90
% 45

f Banglades

Jatiya Sang
e (MOC), C

(BSEC), D
stitute of D
), Banglade
desh Limite
c.   

Amount 
 15 

1,054,781
1,023.69 
342.27 
279,663,3
55,059.27
9,987,976
1,966.40 

n Journal of F

            

d for average
Three) Mon

ec.  
19 

D
20

1% 33
% 19
% 15
% 72
% 10
% 16
% 25
0% -3
% 10

sh Bank (20

sad (JS) [N
entral Bank

Dhaka Stock
Developmen

esh Investm
ed (CDBL)

A
-3

1 11
25
24

337 23
7 25
6 22

24

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

e calculatio
nths. 

Dec.  
020 

A

35% 3
9% 1
5% 1
2% 5
08% 7
67% 5
58% 1
37% 7
06% 4

021) 

National Par
k, Banglade
k Exchange
nt Studies (
ment Deve
), political 

AAGR (201
3% 
1% 
5% 
4% 
3% 
5% 
2% 
4% 

ccounting 
946-052X 
15, No. 1 

think.org/  

ons. 

AAGR 

380% 
15% 
14% 
53% 
74% 
58% 
131% 
72% 
48% 

liament], 
sh Bank 

e (DSE), 
(BIDS), 
lopment 
party in 

6 – 2020) 



 

 

Table 8
      

Produc
Inward 
Cash In
Cash O
P2P Tra
Salary D
Utility B
Mercha
Govern
Others 

Source:

ii. Non-

The bod
country
Dialogu
Initiativ
investo

iii. Inter

The int
Registra
SME Fo
stock d
Industry
Banglad
Publicly
Regulat
Associa

iv. Exte

The ex
Banglad
Banks (

v. Glob

The glo
Bank (A
and oth

The abo

8.  Latest
         

cts  
Remittance

n Transactio
ut Transacti

ansaction 
Disburseme
Bill Paymen

ant Payment
nment Paym

 

:  Bangl

-Governmen

dies under 
y (PPO), T
ue (CPD),
ve Leading

ors, and the

rnal Stakeh

ternal stak
ar of Joint 
oundation; 

dealers; stoc
y, Dhaka (M
desh Cham
y listed Co
tory Author
ation (BLFC

ernal Stakeh

xternal stak
desh Bank,
(BAB), Cre

bal and/or In

obal and/or 
ADB), Inte

her.  

ove stakeho

t Product W
         

e 
on 
ion  

ent (B2P)  
nt (P2B) 
t  

ment 

ladesh Bank

nt Stakehold

non-govern
Transparen
 Policy R

g Developm
e other.   

olders 

keholders in
Stock Com
SMEs in th
ck brokers;
MCCI); Dha

mbers of Co
ompanies (
rity of Bang
CA); etc.  

holders 

keholders i
, Non-Bank
dit Rating A

nternational 

internation
ernational M

olders to be 

           

Wise Perform
         

Janu
188.7
17,2
15,80
17,45
2,189
803.
1,924
132.2
1,53

k (2021) 

ders 

nment stake
ncy Interna
Research In
ment (BUIL
 

nclude liste
mpanies and 

e country; f
merchant 

aka Chambe
ommerce a
(BAPLC); i
gladesh (ID

include me
k Financial
Agencies, A

Stakeholde

nal stakehol
Monetary Fu

taken into c

            57

mance of M
         

uary, 2021 
74 
12.22 
07.87 
59.33 
9.63 
12 
4.70 
28 
8.82 

eholders inc
ational Ba

nstitute (PR
LD), foreig

ed compan
Firms (RJS

firms involv
bankers; M
er of Comm

and Industr
insurance c

DRA);  Ban

edia (both 
l Institution

Audit Firms,

ers  

lders includ
und (IMF),

consideratio

Asian

            

MFS (2016 –
         

clude politic
angladesh 
RI), Policy
gn investor

ies in DSE
SCF); large
ved in tradin

Metropolitan
merce and In
ry (FBCCI)
companies; 

ngladesh Le

print and 
ns (NBFIs)
, and the oth

de World Ba
, United Na

on duly. The

n Journal of F

            

2020)    
         

Februa
179.29 
16,042.8
15,235.3
16,744.5
2,190.82
765.81 
1,873.88
568.24 
1,458.46

cal parties i
(TIB), C

y Exchang
rs, non-resi

E, CSE; lis
e buying com
ng and manu
n Chamber 
ndustry (DC
); Banglade

Insurance 
asing and F

digital), b
), Banglade
her.  

ank (WB), A
ations Deve

ey need to b

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

         
   In Cror

ary, 2021 

89 
33 
55 
2 

8 

6 

in oppositio
Center for 
ge (PE), B
ident Bang

sted compa
mpanies (D

nufacturing b
of Comme

CCI); Feder
esh Associa

Developm
Finance Com

banks listed
esh Associa

Asian Deve
elopment P

be mapped 

ccounting 
946-052X 
15, No. 1 

think.org/  

   
re BDT 

on in the 
Policy 

Business 
gladeshi 

anies in 
Debtors); 
business; 
erce and 
ration of 
ation of 

ment and 
mpanies 

d under 
ation of 

lopment 
Program, 

in terms 



 

 

of their
program
visualiz
decision
on the 

5. Conc

The stu
through
wherein
urgent 
practice
function

The stu
increasi
nation: 
pandem

The stu
remains
owned 
transact
place in
day eco
to maxi
place on

The stu
assessed
conditio
with the

The stu
(Financ
financia
instance
transact
over the

The stu
formula

In Bang
finance

r power, su
m (Chinyio
zing the po
n. It allows 
  decision.

clusion 

udy presents
h trade rece
n the suppl
and regular
es of leadin
nal definitio

udy finds 
ingly adopt
by 2024 

mic, this tran

udy finds B
s in trade r
enterprises

tions, etc. T
n the econom
onomic activ
imum BDT
n credit that

udy has ass
d in terms o
on of ICT in
e help of the

udy finds th
cial Techno
al services 
e, the annu
tion, numbe
e period 201

udy gives a 
ate the strate

gladesh, th
, particularl

upport, influ
o & Olom
osition of a

the extent o
. It also sho

s an alterna
eivable (TR
ying firms 
r business e
ng invoice t
on of TRX. 

that many 
ting and/or 
it will be 

nsition time 

Bangladesh 
receivable 

s’ (SOEs’) 
The study f
my. For inst
vities in the

T 892 crore 
t justifies th

sessed the 
of ICT prep
n the countr
e existing la

hat a robust
logy). In B
(MFS). Th

ual average
er of daily 
16 – 2020. 

tentative lis
egies to man

here is no e
ly for cottag

           

uence, inter
olaiye, 201

all stakehol
of the influe
ws how the

ative mode 
RX). TRX 

can discou
expenses. T
trading plat
 

countries 
adapting T
an upper-m
has been ex

as potentia
form in th
purchase, l

finds that ev
tance, over 
 economy t
(8920 milli

he adoption 

readiness o
paration and
ry is suppor
aws, acts, ru

t ready mar
Bangladesh, 
he MFS ma
e growth ra
average tra
 

st of the sta
nage them w

exchange li
ge, micro, s

            58

rest, and att
10). The s
lders in ter
ence and th

ey are conne

of financin
is propose

unt their inv
TRX is a hy
tforms in d

including 
TRX. Bangl
middle inco
xtended till 

al for TRX
he economy
listed comp
very day a 
the years fr

took place fr
ion). A sign
and/or adap

of the coun
d regulatory
rtive to TRX
ules, policie

arket is exis
the FinTec

arket is exp
ates of MF
ansaction, a

akeholders r
which may 

ike TRX. I
small, and m

Asian

            

titude in re
stakeholder 
ms of their

he depth of t
ected with th

g by the en
d to work 
voices for 
ybrid versio

different cou

developing
ladesh is on
ome countr
2026.   

. It finds th
y against go
panies’ pur
large volu

rom 2011-2
from minimu
nificant amo
ptation of T

ntry to ado
y issues. Th
X. The regu
es related to

sting in the
ch industry 
panding inc
FS were 25
nd average 

related to T
be continue

It may pro
medium ent

n Journal of F

            

elation to im
mapping 

r influence 
the interest 
he decision

ncashment o
as like as 

immediate 
on of facto
untries, the 

g and deve
n the way t
ry. Howeve

hat a large 
overnment 
rchase, non
me of busin
012 to 2019
um BDT 50
ount of thes

TRX in the c

opt and/or a
he study fin
ulatory issue

ICT and st

 country in
works in t

creasingly i
5%, 22%, 

daily trans

RX that can
ed as a furth

vide an alt
terprises (C

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

mplement th
is the pro

e and intere
of the stake

n.  

of trade rec
 a stock ex
cash to me

oring. Based
e study has 

eloped nati
to be a dev
er, due to 

volume of
procuremen

n-listed firm
iness activit
9-2020, ave
0 crore (500
se transactio
country.   

adapt TRX
nds that the 
es can be ad
tock exchan

n terms of 
the form of
in the coun
and 24% f

saction resp

n be mappe
her study on

ternative so
CMSMEs) o

ccounting 
946-052X 
15, No. 1 

think.org/  

he TRX 
ocess of 
est on a 
eholders 

eivables 
xchange 
eet their 
d on the 
given a 

ions are 
veloping 

Corona 

f money 
nt, state 

ms’ B2B 
ties take 

erage per 
0 million) 
ons take 
  

X. It has 
existing 

ddressed 
nges.  

FinTech 
f mobile 
ntry. For 
for total 
pectively 

ed out to 
n TRX.  

ource of 
of which 



 

 

more th
financin

The stu
a soluti
TRX as
mandat
register

The stu
The fiel
of mon
points: 
consum
opportu

Banglad
of every
BDT 28
receivab
implem
Vision 2

Notes 

Note 1
discoun

Note 2.
or the o
discoun

Note 3.
pandem

Note 4.
2021; S

Note 5. 

Note 6. 

Note 7
purchas

Note 8.
research
scenario

Note 9.

Note 10

 

han 51% cl
ng working 

udy carries a
ion for work
s mode of 
ory for the

red in TReD

udy carries s
ld deserves 
ey, (iii) inc
one is at 

mption stag
unities on TR

desh is a lan
y three job
8,634,561,8
ble form. T

mentation of 
2041, Visio

. For insta
nted by the i

 Without re
owner of th
nting the tra

. All these 
mic is a glob

. Equivalen
Source: Ban

Though thi

As on 20 F

. Though g
se are includ

 The descri
h. Here a b
o in the cou

The name o

0. Practicall

lose due to
capital. In t

a policy imp
king capita
financing 

e firms tha
DS (Trade R

some limita
a study in 

creasing fina
the produc

ge of the 
RX.      

nd of 7.818
s in the pri

800,000.00 
The release 
f the perspec
n 2071, Vis

ance, the i
investors. 

ecourse refe
he trade rec
ade receivab

are the con
bal issue. 

nt to BDT 2
ngladesh Ban

is year’s pur

February, 20

government
ded in the o

iption on th
brief notatio
untry. 

of the main 

ly, large corp

           

o the lack o
this regard, 

plication. Th
l. On the o
for CMSM

at have ann
Receivables 

ations. The 
combinatio
ancing oppo
ction stage
same, etc.
 

 million firm
ivate sector
($1 = 84.6
(conversion

ctive plans o
sion 2100: th

invoice on 

ers to the cre
ceivables) i
bles (invoice

ndition excl

2,120,000,00
nk 

rchase is af

021, this list

t procurem
overall GDP

e readiness 
on is provid

island of th

porates can

            59

of working
the study d

he policy m
other hand, 
MEs. For in
nual turnov
electronic D

quantity of
on of (i) eve
ortunities o

e of goods 
. These d

ms of which
r. It is an e
2). A large
n) of this m
of the gover
he Delta Pla

perishable

edit agreem
s not liable
es). 

luding the p

00,000.00 [

ffected by C

t stands 599

ment, SOEs
P.  

of the coun
ded to give 

he country. 

n also avail t

Asian

            

g capital (N
deserves nov

makers at the
governmen

nstance, in 
er of INRs
Discount Sy

f empirical 
er evolving 
on trade rece

or service
dimensions 

h 99% are C
conomy of 

e amount of
money into c
rnment such
an. 

e goods ar

ment in whic
e for the rep

pandemic p

[1 US$ = B

COVID – 19

9. 

’ purchase 

ntry in term
a sense on

the financin

n Journal of F

            

Note 10). T
velty and sig

e firms’ leve
t may also 
India, Gov
s 500 crore
ystem) Platf

research in 
IT applicati
eivables bet

es and anot
may creat

CMSMEs th
f $338.39 bi
f money rem
cash may fa
h as Vision 

re less dem

ch the benef
payment of

period (COV

BDT 84.80 

9.  

as well as

ms of ICT so
n the depth 

ng through T

Finance & Ac
ISSN 19

2023, Vol. 1

   ajfa.macro

TRX is suit
gnificance. 

el may find 
adopt and/

vernment ha
e and abov
forms, i.e. T

n the field is
ion, (ii) dig

etween two 
ther one is
te future r

hat provide 
illion equiv
mains tied 

facilitate fur
2021, Visio

manding fo

ficiary (the 
f the loan t

VID-19). H

as on 18 F

s listed com

olely deserv
and spread

TRX.  

ccounting 
946-052X 
15, No. 1 

think.org/  

table for 

TRX as 
or adapt 
as made 
ve to be 
TRX. 

s scarce. 
gitization 

extreme 
s at the 
research 

two out 
valent to 
in trade 

rther the 
on 2030, 

or being 

supplier 
taken by 

However, 

February, 

mpanies 

ves a big 
d of ICT 



 

 

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