The year 2023 was indeed one of the most difficult ones in the recent history of Bangladesh in terms of economic performance.
Bangladesh Krishi Bank (BKB) has been incurring losses for at least 30 years due mainly to structural weaknesses as the state-run lender has to lend at lower interest rates, pay more for deposits and is sitting on higher non-performing loans.
It is necessary to get an appropriate estimate of NPLs so that the actual performance of the banking sector can be understood.
Relaxing loan repayment is unlikely to work if habitual defaulters continue to be tolerated
Banks in Bangladesh witnessed an accumulation of default loans by Tk 10,964 crore in the first three months of 2023, highlighting the worsening financial health of the banking sector, official figures showed.
While a number of banks and non-bank financial institutions (NBFIs) are struggling to rein in their non-performing loans (NPL), DBH Finance PLC has continued to maintain the lowest NPL to loan ratio in the industry for years.
The government is yet to take any comprehensive corrective measures to tackle macroeconomic challenges as it has not properly assessed the gravity of the situation in the current fiscal year, an economist said.
NPLs held by banks in Asia totaled $794 billion at the end of 2021, up from $766 billion in 2020 and $692 billion in 2019
Misgovernance, corruption, nepotism and subsequent bad debts keep plaguing our banking landscape.
The year 2023 was indeed one of the most difficult ones in the recent history of Bangladesh in terms of economic performance.
Bangladesh Krishi Bank (BKB) has been incurring losses for at least 30 years due mainly to structural weaknesses as the state-run lender has to lend at lower interest rates, pay more for deposits and is sitting on higher non-performing loans.
It is necessary to get an appropriate estimate of NPLs so that the actual performance of the banking sector can be understood.
Relaxing loan repayment is unlikely to work if habitual defaulters continue to be tolerated
Banks in Bangladesh witnessed an accumulation of default loans by Tk 10,964 crore in the first three months of 2023, highlighting the worsening financial health of the banking sector, official figures showed.
While a number of banks and non-bank financial institutions (NBFIs) are struggling to rein in their non-performing loans (NPL), DBH Finance PLC has continued to maintain the lowest NPL to loan ratio in the industry for years.
The government is yet to take any comprehensive corrective measures to tackle macroeconomic challenges as it has not properly assessed the gravity of the situation in the current fiscal year, an economist said.
NPLs held by banks in Asia totaled $794 billion at the end of 2021, up from $766 billion in 2020 and $692 billion in 2019
Misgovernance, corruption, nepotism and subsequent bad debts keep plaguing our banking landscape.
Interventions must involve fiscal policy to address our fundamental economic issues