This document is a diagnostic study by World Bank for Strengthening BHBFC. The Bangladesh House Building Finance Corporation (BHBFC), a specialized housing finance institution in Bangladesh, has been in operation for more than 50 years. Over the years it has developed an unmatched experience and a “brand image” in the housing finance market of Bangladesh. The Bangladesh House Building Finance Corporation (BHBFC), a specialized housing finance institution in Bangladesh, has been in operation for more than 50 years. Over the years it has developed an unmatched experience and a “brand image” in the housing finance market of Bangladesh. Being a public sector enterprise, wholly owned by the Government of Bangladesh, it is administered and regulated by the Ministry of Finance. Consequently, it has developed cultural and operational issues typical of a state enterprise. While the local financial scene and business environment are rapidly changing in Bangladesh, the BHBFC has been traditional and conservative in its response to these changes, without a strong commercial orientation. Due to the recent entry of banks and financial institutions into the housing finance market, BHBFC’s position in the market has changed from a monopoly to a competitive environment.