According to Bangladesh Bank, banking industry countries to encounter challenges, such as an increasing in non-performing loans(NPLs) this year that is likely to surpass 30 percent of outstanding loans by June, leading to more significant problems.
The Bangladesh Bank highlighted the increasing concerns in the economic policy for January to June 2025.
At the end of September 2024, the central bank has predicted a surge in NPLs, which stood at 16.93 percent, up from 9.93 percent a year ago.
For the period of 2025, Bangladesh Bank said in the financial policy for January-June that assisting factors include systemic weaknesses, regulatory gaps, and profiteering, unveiled today.
The Bangladesh Bank indicated the expanding issues upon NPLs, slothful economic activities, and a deceleration in deposit and credit growth, those are present intimidating challenges for the banking sector.
Numerous banks are recently facing an important liquidity crisis due to the increasing NPLs, slow deposit growth, and weak loan rebound that is notified by the central bank.
Source: The Daily Star
