The interim government is formulating a distressed asset management ordinance that could pave the way for a state-owned corporation to buy and trade troubled assets from banks and non-bank financial institutions (NBFIs).

The banking sector continues to face challenges, including rising non-performing loans (NPLs), which are likely to exceed 30 percent of total outstanding loans by June this year, raising serious concerns, said Bangladesh Bank (BB).

The stressed loans in the banking sector of Bangladesh will remain elevated even after the central bank tightened the rules for classification of non-performing loans (NPLs), said Moody’s Investors Service.   

Any success of its roadmap will depend on its enforcement

Punish wilful defaulters before banks’ health further deteriorates

Authorities must improve monitoring to keep the sector in check

Latest figures show how persistent the problem has been