Loan default

Regulators responsible for the ailing banks

Punish wilful defaulters before banks’ health further deteriorates

Loan default now part of business model

Defaulting on loans is progressively becoming part of the business model to stay competitive, said Rehman Sobhan, chairman of the Centre for Policy Dialogue.

Government must choose citizens over oligarchs

Otherwise, banking sector health will continue to deteriorate

The Bangladeshi model of dealing with bank crises

The growth of bad loans is mainly due to the business-politics nexus, lack of corporate governance, and weak judicial system

Don’t fall for quick fixes in bank sector

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

Overflow of non-performing loans

Time for govt to change its policy towards habitual defaulters

Bangladesh 2nd in South Asia in bad loan ratio

Bangladesh’s banking sector has the second-highest ratio of non-performing loans (NPL) among the countries in South Asia as lenders continue to face multiple challenges emanating from scams, a lack of corporate governance and borrowers’ growing reluctance to make instalments regularly.  

The ongoing economic peril and our plundered future

'Lunthito Bhabishyat: Bangladesher Arthanoitik Shonkoter Chalchitra' gives an overview of Bangladesh's current economic crisis.

We got less than what we borrowed

Several farmers, accused of defaulting on loans in Pabna, have said they became victims of fraudulent activities when they took the loans from Bangladesh Samabaya Bank.

August 3, 2022
August 3, 2022

Taking loans v tackling laundering: Which serves our long-term interests best?

Fighting tax evasion, preventing trade-based illicit financial outflows and ending the culture of money laundering and loan defaults is a much more sustainable solution to adding to foreign exchange reserves than taking foreign loans on interest.

April 26, 2022
April 26, 2022

Bangladesh Bank revises post import financing policy

The Bangladesh Bank today revised its policy for post import financing (PIF) in order to give clarification to banks as importers have faced complexities to get fund properly.

October 13, 2019
October 13, 2019

Curbing Loan Default: ‘Match-fixing’ in govt measures

The government seems to lack the will to arrest bad loans and restore corporate governance in the banking sector with the habitual defaulters working the system, analysts said.

July 24, 2019
July 24, 2019

Bad loans put Janata in trouble

State-run Janata Bank’s provisioning shortfall has hit a whopping Tk 8,256 crore, the highest-ever deficit for any bank in the country, putting depositors’ money at risk.

March 18, 2019
March 18, 2019

Bailout for big loan defaulters

Bangladesh Bank and a government committee have come up with a generous scheme to allow easy rescheduling of defaulted loans, which experts say will hurt the banking sector and the economy at large.

January 23, 2019
January 23, 2019

Loan default increases because of bad management

The new finance minister, Mustafa Kamal, has vowed to address the longstanding concerns regarding increasing non-performing loans in banks. Khondkar Ibrahim Khaled, a noted banker and former deputy governor of Bangladesh Bank, talks to The Daily Star's Nazmul Ahasan about the issue.

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