Despite repeated warnings, no effective measures have been taken to rectify the poor governance.

The amount of bad loans has been spiralling in Bangladesh owing to rampant politically-motivated lending and inadequate credit risk management, according to a World Bank report.

The financial oligarchy under crony capitalism in the country is using banks as vehicles to fulfil their goals, said Fahmida Khatun, executive director of Centre for Policy Dialogue (CPD)

The IMF mission met with the deputy governors, policy advisor, executive directors and directors in different meetings at the central bank headquarters.

It is alleged that a group of politically-connected people took out large loans from state-owned commercial banks (SOCBs) and intentionally defaulted on them.

It seems there exists a nexus among the policymakers, bank directors, and defaulters which facilitates the process of swindling depositors’ money.

The news of Bangladesh occupying the second-highest position in South Asia in terms of a bad loan ratio is no surprise.