An estimated Tk 70,000 crore, along with time and careful management, would be needed to solve the crisis in the banking sector, said Bangladesh Bank Governor Ahsan H Mansur.

To attain viability, banks must manage the various risks they encounter in this process of intermediation.

BB governor says as businesses demand action

Asset quality review aims to improve banking sector stability

Banking sector's asset quality declines as distressed loans balloon to Tk 7.56 lakh crore

Large volumes of long-buried toxic loans surfaced after last August's political changeover

New rules tie promotion to exams, training, and clean service records across four state-run banks

The ongoing crisis has been caused by the last one and a half decades of grand-scale deviation of governance in the banking industry.

Despite rising interest rates on deposits and various efforts by the central bank, Bangladesh’s banking sector continues to face a liquidity crisis that has hamstrung some lenders.

The regime-sponsored immorality to protect or pamper the financial gangsters not only eroded the future of the banking sector, but also made the wound too difficult to recover from.

Traditional contractionary policies may not be suitable for Bangladesh’s unique economic structure.

The Bangladesh Bank is working to formulate a “Bank Resolution Act” for mergers, acquisitions, liquidation or recapitalisation of banks.

Restoring trust in the banking sector is crucially important

We hope that the BB governor will continue the momentum and spirit to bring order and promote the economy.

Good governance and adequate legal infrastructure—relevant laws, courts and impartial judges—need to be established.

But its objectives must be clearly defined and regularly scrutinised

Several banks in Bangladesh are clinically dead but are being kept alive through bailouts, said Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD).

Recover bad loans, punish those who exploited the sector

A recent study was carried out to discover the factors that may cause bank run in Bangladesh.

Its lack of independence has had disastrous effects