Collective Efforts Needed to tackle NPLs

At a dialogue titled "Global Financial Trends & Reforms: Implications for Bangladesh," organized by ICC Bangladesh in Dhaka, business leaders and banking experts warned that rising US tariffs could strain Bangladesh’s banking sector by reducing export earnings, tightening foreign currency liquidity, and increasing non-performing loans.

In just three months ending December 2024, the capital shortfall of 20 Bangladeshi banks soared by Tk1.18 lakh crore, reaching Tk1.72 lakh crore due to a sharp rise in non-performing loans (NPLs), now accounting for 20.2% of total loans. Thirteen banks have provision shortfalls totaling Tk1.09 lakh crore, with major deficits reported in Janata Bank (Tk52,890 crore),

Bangladesh's banking sector is facing a severe capital crisis, with the overall capital-to-risk-weighted assets ratio (CRAR) plunging to 3.08 percent by the end of 2024—far below the Basel III requirement of 10 percent. The drop reflects years of unchecked irregularities under the Awami League government, with state-run, Islamic, and specialised banks suffering the most

To simplify overseas expenses for education, healthcare, and training, Bangladesh Bank has allowed the use of international card platforms for sending money abroad. A circular issued on Sunday extended the previous system, where banks could only use their own branded international cards, by now permitting authorized banks to utilize broader international card platforms.

Agent banking has successfully extended financial services beyond urban centers into rural Bangladesh, becoming a trusted channel for savings and basic banking. By February 2025, the number of agent banking accounts reached 2.44 crore, with over 25 lakh new accounts added in just one year. Notably, rural residents dominate this growth, holding nearly 2 crore accounts, and women now account for over 1.2 crore accounts.

The Financial Institutions Division of Bangladesh’s Finance Ministry is set to introduce a unified promotion policy for officers of six state-owned banks—Sonali, Janata, Agrani, Rupali, BASIC, and BDBL. While the move aims to standardize promotions from Officer to Deputy General Manager level, concerns have emerged over the fairness of the evaluation system.