The year 2023 was indeed one of the most difficult ones in the recent history of Bangladesh in terms of economic performance.

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.

To better understand corporate default risks, generate more data and produce greater information

It is necessary to get an appropriate estimate of NPLs so that the actual performance of the banking sector can be understood.

The combined profits of 35 listed banks in Bangladesh dropped 9 percent year-on-year to Tk 4,160 crore during the first half of 2023 as volatility in the country’s foreign exchange market has curbed their commissions from forex dealings.

The government awarded licences to set up new nine banks in 2013 despite criticism from analysts and economists and initial reservations from the central bank since the number of lenders was already high in Bangladesh and approvals were largely given on political consideration.

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

Comprehensive reforms needed to boost investment, sustain growth

Rescheduling of default loans fell to a seven-year low in 2021, riding on a moratorium extended by the Bangladesh Bank to protect borrowers from the economic shocks arising from the coronavirus pandemic.