Financial stability at stake

Bangladesh Bank has recently revealed its Financial Stability Report (FSR) on banks and made some observations on the banking sector and warned the sector of bad consequences. Non-performing loans are soaring at an unexpected level, which is a serious cause for concern for the overall banking sector and the country's economy. The central bank also hinted that the banks' assets quality is poor and a big chunk of loans are concentrated in only five sectors. Many banks are exercising an aggressive policy of lending. In the prevailing bad situation, all the stakeholders, banks, the central bank and the government should come forward to save the banking sector from any negative consequences.