The surge in cases filed by banks against other banks for loan recovery and outstanding payments is raising concerns among experts, who warn that this trend undermines customer confidence and the stability of the financial system. As of March 2023, the number of bank-vs-bank cases pending in money loan courts nationwide stood at a staggering 6,876, involving Tk16,000 crore. In Dhaka alone, 3,634 cases with approximately Tk7,500 crore at stake are under trial, while hundreds of appeals await disposal. This upward trajectory is evident in data from previous years, with the number of cases rising steadily.
The majority of bank-vs-bank disputes relate to issues surrounding local and international trade, particularly disputes over LC guarantees. Economists and stakeholders urge immediate action to address the escalating problem and mitigate its adverse impact on the banking sector. Suggestions include the withdrawal of additional duties on tile and sanitary product production and implementing measures to expedite inter-bank dispute resolution.