Defaulted loans in the banking sector rose further to Tk 6.44 lakh crore, or nearly 36 percent of total disbursed loans, at the end of September, indicating the continued fragile state of the country’s financial sector.
Bangladesh's banking sector faces a Tk 1.71 lakh crore capital shortfall
Banks have several layers of professionals to regularly assess their financial health and raise early warnings at the first sign of trouble.
Around a dozen banks are currently struggling to repay depositors, eroding public trust
State-owned, Islamic Shariah-based, and specialised banks have seen deeper deterioration in their financial positions, whereas private commercial banks and foreign banks remain on firmer ground.
Bangladesh’s banking sector faces significant challenges due to longstanding structural weaknesses and recent emerging risks, according to the World Bank (WB).
The Bangladesh Bank will be able to sell or liquidate weak banks by forming bridge banks—financial institutions that temporarily take over a failed bank, according to the draft Bank Resolution Ordinance.
Bangladesh Bank (BB) has extended a total of Tk 12,500 crore in emergency funds to three beleaguered banks to dress up their balance sheet ahead of the year’s end.
In October, a video on social media showed the manager of Social Islami Bank’s Agargaon branch breaking down in tears after enduring harsh verbal abuse from frustrated customers seeking to withdraw cash.
The Bangladesh Bank will be able to sell or liquidate weak banks by forming bridge banks—financial institutions that temporarily take over a failed bank, according to the draft Bank Resolution Ordinance.
Bangladesh Bank (BB) has extended a total of Tk 12,500 crore in emergency funds to three beleaguered banks to dress up their balance sheet ahead of the year’s end.
In October, a video on social media showed the manager of Social Islami Bank’s Agargaon branch breaking down in tears after enduring harsh verbal abuse from frustrated customers seeking to withdraw cash.
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.
Banking rules and regulations stipulate a single borrower exposure limit but the banking regulator itself disregarded the rule routinely in the last 16 years.
The adviser made these remarks today during a press conference at the Secretariat in Dhaka
The decline in NOCFPS was primarily due to increased investments in customers and a fall in deposits
Bangladesh’s banking sector was not well-managed in recent years. Banks mostly gave loans to their owners, rather than to creditworthy entities. Consequently, several banks are now in difficulty.
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).
Unrest has gripped the banking sector at a time when several banks are burdened with huge default loans and are suffering from low asset quality.
