S&P Global Ratings has assigned Bangladesh’s banking sector a risk score of 9 out of 10, indicating high risk due to economic instability and limited US dollar availability. The agency cites political instability, weak liquidity, thin capital buffers, and deteriorating asset quality as major concerns. The resignation of Bangladesh Bank’s governor and senior officials risks delaying crucial reforms, such as the Prompt Corrective Action (PCA) framework aimed at improving capital adequacy and corporate governance. Despite these issues, the central bank continues to support liquidity and maintain operations. However, a recent cyberattack and ongoing political unrest have heightened vulnerabilities, with liquidity at banks expected to remain tight. Remittance flows and export activities could be further pressured by political uncertainty and weak external demand.
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