Contribution of Banks to the Development of SMEs’ Access to Finance in Bangladesh

He Bangladeshi economy benefits greatly from SMEs, especially in the areas of employment, Gross domestic product (GDP), and the alleviation of poverty. SMEs in Bangladesh are classified as companies with less than 60 employees and an investment of up to TK 10 million. 99.9% of privately owned industrial facilities are SMEs(IMF, 2012).Despite being a sector with potential for the Bangladeshi economy, SMEs have difficulties getting financing for their operations. The development of SMEs must therefore receive special attention. Due to COVID-19, the SME sector is also experiencing issues on a number of fronts, including company closures, reduced output, job losses, declining sales, and income, etc. To lessen their financial hardship, the Bangladeshi government and Bangladesh Bank have implemented initiatives. Bangladesh Bank has launched a number of programs in order to address the financial challenges the SME sector is facing. There aren't many studies in Bangladesh that talk about SMEs' access to financing. This study examines how banks have helped Bangladeshi SMEs gain access to financing by using time series data. This study reveals that banks in Bangladesh are crucial to the growth of SMEs' access to financing