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Bangladesh banking sector faces crisis as defaulted loans exceed 32%
Bangladesh's banking sector is facing significant pressure as non-performing loans (NPLs) have risen to over Tk 600,000 crore, representing approximately 33 per cent of all disbursed loans. National Professor Mahbub Ullah warned that this surge in defaults is disrupting the essential cycle of loan recovery and reinvestment, which threatens liquidity, bank profitability, and capital adequacy under Basel-II standards.
Despite the national crisis, 13 private banks have maintained NPL ratios below 5 per cent. These institutions include Community Bank, BRAC Bank, Pubali Bank, Citizens Bank, Prime Bank, City Bank, Eastern Bank, Jamuna Bank, Bengal Commercial Bank, NCC Bank, Uttara Bank, Shahjalal Islami Bank, and Shimanto Bank. These banks attribute their stability to disciplined loan approval processes, rigorous borrower assessment, and a strategic focus on SMEs and consumer lending.
According to indicators from the IMF and World Bank, Bangladesh currently holds the highest level of non-performing loans globally. Experts suggest that the rising default rate could hinder new credit disbursement, impacting industrial investment, employment, and overall economic growth.
Entities
Bangladesh Bank · Bangladesh Institute of Bank Management · Dr. Mahbub Ullah · IMF · International Monetary Fund · Mahbub Ullah · World Bank
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Thirteen private banks in Bangladesh maintain non-performing loan ratios below 5 per cent. www.prothomalo.com · en.prothomalo.com
- [● 2 SOURCES] Non-performing loans reached over Tk 600,000 crore by the end of June. www.prothomalo.com · en.prothomalo.com
- [● 2 SOURCES] Defaulted loans in Bangladesh exceed 32 per cent of total loans. www.ajkerpatrika.com · tob.news
- [● 2 SOURCES] Some banks are struggling to maintain capital reserves required by Basel-II standards due to losses and defaults. www.ajkerpatrika.com · tob.news
- [● 2 SOURCES] Bangladesh has the highest level of non-performing loans globally according to IMF and World Bank indicators. www.prothomalo.com · en.prothomalo.com
- [● 2 SOURCES] Rising defaults are disrupting the cycle of loan recovery and reinvestment, pressuring liquidity. www.ajkerpatrika.com · tob.news