Just ten banks, both state-owned and private, account for 71 percent of all non-performing loans (NPLs) in the country’s banking sector.
The interim government is formulating a distressed asset management ordinance that could pave the way for a state-owned corporation to buy and trade troubled assets from banks and non-bank financial institutions (NBFIs).
Bangladesh's banking provision shortfall soared six-fold to Tk 170,655 crore, due to soaring bad loans
Bad loans in Bangladesh’s banking sector hit a record Tk 420,335 crore at the end of March as a clearer picture of the toxic loan is coming to light following the political changeover in August last year.
Around a dozen banks are currently struggling to repay depositors, eroding public trust
The banking sector is currently going through one of its worst times. People are suffering, with some even failing to withdraw their own money, causing immense distress.
The discord became apparent after Faiz Ahmed Taiyeb, special assistant to the chief adviser with authority over the Ministry of Posts, Telecommunications and IT, sent a letter to the BB governor on May 12 and posted the letter to his Facebook account recently
Bangladesh Bank has recently discovered through a probe that the joint director of its Rajshahi office, who has been serving the central bank for 12 years under the name of Md Abdul Waresh Ansary, is actually an imposter.
The defaulted loan figure is set to double as the Bangladesh Bank is set to tighten the classification rules for all types of loans by March next year to meet the International Monetary Fund’s loan conditions.
Awami League-affiliated businesses had already put the country’s banking sector in trouble with huge bad debts, but the loans disbursed through irregularities to these companies turned sour even at a more alarming pace after the party’s ouster.
Despite an overall improvement in foreign currency stocks, some state-run banks and Shariah-based lenders are not making import payments on time, prompting the central bank to issue a notice and warn of punitive actions against bank officials.
A bank will not be able to do Islamic banking business along with conventional banking at the same time, according to the draft ‘Islami Bank Company Act-2024’, as the central bank looks to level the playing field for Shariah-based banks.
Private sector credit growth decelerated to the slowest pace in three years in September due to uncertainty in the investment environment following the recent political changeover.
Remittance inflow has continued to rise for the past few months, providing a breather for a country facing multiple challenges, including external payment pressures amid dwindling foreign exchange reserves.
A large chunk of a Tk 10,000 crore central bank fund, meant for financing raw material imports for export orders, remains stuck with four crisis-hit banks, according to Bangladesh Bank officials.
A “staffer of S Alam Group” took out Tk 118 crore from Union Bank without any approval or following any banking norms, indicating how the controversial business conglomerate used the bank.
While more than a dozen banks in Bangladesh are struggling to stay afloat, Pubali Bank, which has emerged as one of the leading private commercial lenders, stands as a glowing example of how to traverse difficult times.
The volume of cash outside the banking sector of Bangladesh has been increasing since the start of the year due to persistent inflation, the loss of consumer confidence in the sector due to the presence of ailing lenders, and the prevailing situation following the recent political changeover.
