Financialization refers to the increasing size, influence, and dominance of financial markets, financial institutions, and financial motives in the economy.
Key characteristics include the growing size of the financial sector, companies prioritizing financial activities over core production for profits, and increased reliance on debt.
This process can divert attention from productive investment, weaken labor markets, and increase income inequality.
While Bangladesh doesn't exhibit financialization to the extent of developed economies, some signs are visible — such as excessive stock market speculation and the tendency to invest in real estate over productive enterprises.