By now, it is common knowledge that Bangladesh’s banking sector has several fundamental problems, with non-performing loans (NPLs) being the major one.

Scooping up the global championship in defaulted loans is no mean feat.

Ten banks accounted for more than 72 percent of the banking sector’s total non-performing loans, according to the central bank, showing that the country’s 61 commercial lenders are not equally responsible for the sector’s financial distress.

The number of accounts with classified loans of up to Tk 1 crore rose to 45.43 lakh at the end of March this year

Regulatory forbearance, systemic evergreening of bad debt must end

"The financial sector we have inherited is a matter of serious national concern," he said

Total outstanding loans stood at Tk 1,824,668 crore

Plagued with a huge amount of non-performing loans (NPLs), capital deficiency, provision shortfall, management inefficiency, and other issues, Bangladesh’s banking sector is indeed in an extremely vulnerable state.

I worked with senior officials at Bangladesh Bank in developing the framework for the 2025 Bank Resolution Act, which is similar to India’s Insolvency and Bankruptcy Code, 2016, and analogous frameworks in Indonesia and a few other comparable economies.

Faruk Hasan lies bedridden in his home, recovering from bypass surgery. The 64-year-old heart patient needs regular medication to stay alive, but he cannot access the money to pay for it. His life savings -- Tk 80 lakh in fixed deposits -- remain frozen at Aviva Finance, a financial institution now on the verge of liquidation.

Wieger Wielinga, managing director of Omni Bridgeway, speaks with The Daily Star breaking down the concept of litigation funding.

Bangladesh Bank Governor Ahsan H Mansur revealed the figures at a press conference today

Major indexes of the stock markets in Bangladesh rose marginally yesterday, snapping a three-day losing streak, as investors cautiously traded shares amidst intense political and economic uncertainties..Recent news over the downgrading of the country’s sovereign rating by Moody’s and the b

The Bangladesh Bank yesterday introduced strict measures for wilful defaulters as the authorities look to restore people’s confidence in the banking sector in the face of escalating defaulted loans.

Noted economists recommended focusing on macroeconomic stability, publishing the names of top loan defaulters, and forming a review commission on government expenditures.

Business leaders have demanded that the identities of wilful loan defaulters be disclosed for public shaming and for punishing them.

The year 2023 was indeed one of the most difficult ones in the recent history of Bangladesh in terms of economic performance.

Bangladesh Krishi Bank (BKB) has been incurring losses for at least 30 years due mainly to structural weaknesses as the state-run lender has to lend at lower interest rates, pay more for deposits and is sitting on higher non-performing loans. 

It is necessary to get an appropriate estimate of NPLs so that the actual performance of the banking sector can be understood.

Relaxing loan repayment is unlikely to work if habitual defaulters continue to be tolerated