Non-bank financial institutions (NBFIs) in the past fiscal year saw their defaulted loans reach a record 33.15 percent of all disbursed loans, according to the central bank, indicating a fragile situation in the sector thanks to widespread loan irregularities and scams.
Deposits at non-bank financial institutions (NBFIs) have slightly increased on an interest rate hike but the number of deposit accounts have dropped sharply, indicating a lack of trust.
Authorities must improve monitoring to keep the sector in check
Of the 23 listed NBFIs in Bangladesh, 17 published their financial reports
Deposits of Tk 1,600 crore of four state-run commercial banks —Sonali, Rupali, Agrani, and Janata — have been stuck in several weak non-bank financial institutions (NBFIs) as the latter have repeatedly failed to repay despite maturity owing to a persisting liquidity crisis.
Non-bank financial institutions (NBFIs) have remained comparatively less regulated owing to a major gap between the Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC) on some provisions relating to corporate governance, according to analysts.
Investors are hardly showing any interest to buy stocks of banks mainly due to the sector’s key indicators portraying a gloomy outlook.
Although most non-bank financial institutions (NBFIs) in Bangladesh are struggling with a high rate of non-performing loans (NPLs), some of them are bucking the trend by maintaining a lower ratio.
Nearly half of non-bank financial institutions (NBFIs) saw a third of their loans turn into non-performing ones at the end of March 2023, which gives an indication of the tough times the sector was going through mainly due to massive irregularities in 8 to 10 companies.
Non-bank financial institutions (NBFIs) in the past fiscal year saw their defaulted loans reach a record 33.15 percent of all disbursed loans, according to the central bank, indicating a fragile situation in the sector thanks to widespread loan irregularities and scams.
Deposits at non-bank financial institutions (NBFIs) have slightly increased on an interest rate hike but the number of deposit accounts have dropped sharply, indicating a lack of trust.
Authorities must improve monitoring to keep the sector in check
Of the 23 listed NBFIs in Bangladesh, 17 published their financial reports
Deposits of Tk 1,600 crore of four state-run commercial banks —Sonali, Rupali, Agrani, and Janata — have been stuck in several weak non-bank financial institutions (NBFIs) as the latter have repeatedly failed to repay despite maturity owing to a persisting liquidity crisis.
Non-bank financial institutions (NBFIs) have remained comparatively less regulated owing to a major gap between the Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC) on some provisions relating to corporate governance, according to analysts.
Investors are hardly showing any interest to buy stocks of banks mainly due to the sector’s key indicators portraying a gloomy outlook.
Nearly half of non-bank financial institutions (NBFIs) saw a third of their loans turn into non-performing ones at the end of March 2023, which gives an indication of the tough times the sector was going through mainly due to massive irregularities in 8 to 10 companies.
Although most non-bank financial institutions (NBFIs) in Bangladesh are struggling with a high rate of non-performing loans (NPLs), some of them are bucking the trend by maintaining a lower ratio.
All of the listed non-bank financial institutions (NBFIs) in Bangladesh that published their financial reports for the January-June period of the current calendar year reported lower earnings due to reduced interest income, among other reasons.