Banking sector in Bangladesh suffers from high interest rate spread. This puts pressure on the banking sector to increase profits due to the higher interest rate spread. In the financial and economic environment of Bangladesh, this would not be possible, thereby reducing market competitiveness. This is one of the characteristics of monopolistic competition (MonzurHossain, 2010). Second, Bangladesh's banking sector is quite open and offers few barriers to entry. Foreign banks are also allowed to operate with the advantage that in their home country the interest rate differential is lower. It has been argued that measures should be taken to improve competition in the market, but these measures have not been successful. looking at the market structure in which banking facilities will have to be provided to the mass which will depend on the