As most of our economic sectors depend heavily on banks, it has created many problems for the banking sector and its depositors.
Political support and a strong Bangladesh Bank are crucial to deal with the challenges, including high non-performing loans (NPLs), in the banking sector, said Mustafa K Mujeri, a former chief economist of the central bank, yesterday.
In the banking sector of Bangladesh, exemptions from rules and regulations for powerful loan defaulters seem to be the default rules.
Janata Bank must answer for its poor handling of AnonTex’s loans
Relaxing loan repayment is unlikely to work if habitual defaulters continue to be tolerated
Non-bank financial institutions in Bangladesh lost 48,637 deposit accounts in the three months to December as savers moved away from NBFIs owing to the imposition of the cap on the deposit rate and the erosion of confidence in the wake of allegations of irregularities at some banks.
Moody’s, one of the big three global rating agencies, downgraded its outlook for Bangladesh’s banking sector from “stable” to “negative.”