Bangladesh’s financial sector struggles with eroded trust due to poor governance, irregularities, and lenient punishments for wrongdoings. Non-performing loans (NPLs) rise in banks and non-banking financial institutions, while the insurance sector’s claim settlement ratio lags behind global norms. The stock market’s low market capitalization and declining investor participation exacerbate the situation. Experts emphasize that addressing the governance crisis is crucial for the sector to support Bangladesh’s development goals. Lack of corporate and regulatory governance, coupled with non-compliance, contribute to declining confidence. Urgent reforms are needed to prevent adverse effects on the country’s economic progress.
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