Bangladesh Bank recent data reveals, the defaulted loans in 35 non-bank financial institutions increased by Tk 1,333 crore in the first three months of the year of 2023 (January to March). The total defaulted loans at the end of March reached Tk 17,855 crore, compared to Tk 16,821 crore in December the previous year. Overall, non-bank financial institutions saw their outstanding loans rise to Tk 71,265 crore in March. The liquidity problems in the funds of these institutions, coupled with a lack of public confidence and withdrawal of bank deposits, contributed to the default crisis. People’s Leasing and Financial Services topped the list of defaulters, followed by Bangladesh Industrial Finance Company and Fareast Finance. As institutions struggle to regain public trust, the sector’s overall stability remains uncertain.
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