The state-owned bank's failure to meet any of the performance targets set by the central bank raises a red flag.
Janata Bank has failed to meet any of its performance improvement targets set by the central bank in the first half of the year -- a worrying development given that the state bank accounts for the second-highest volume of deposits and loans among the 61 scheduled lenders in Bangladesh.
It is alleged that a group of politically-connected people took out large loans from state-owned commercial banks (SOCBs) and intentionally defaulted on them.
The International Monetary Fund has identified the problems in the banking system, including the high volume of defaulted loans, as one of the three domestic risks that derail the economy in the short- to medium-term.
Let’s think of some out-of-the-box ways to tackle even the most formidable of problems.