This study assesses the strengths and weaknesses of reforms in the banking and insurance industries. Banking sector performance is analysed using various indicators as well as Principle Component Analysis techniques. A comparative case study of three banks with different ownership structures is presented. The study concludes with important conclusions and policy implications for future reforms based on the findings. Financial sector reform in Bangladesh started in 1976 with privatization of the banks to encourage private investment, and continue in the mid-1980s as part of Structural Adjustment Policies (SAP). Between 1992 and 1996, a Financial Sector Reform Programme (FSRP) was implemented. Its major aim was to improve the operations of Nationalized Commercial Banks (NCBs) through the development of new banking technologies, computerization of banking operations, upgrading of skills, changing outdated internal banking practices and corporate and credit cultures. Further reforms are underway.