Bangladesh Bank aims to reduce default loans below 8% by June 2026, targeting NPLs of state commercial banks at 10% and private banks below 5%, and easing loan write-off policies.

The Bangladesh Bank (BB) has announced a plan to reduce the default loans in the banking sector below 8% by June 2026. The central bank aims to decrease non-performing loans (NPLs) of state commercial banks to 10% and private banks to below 5% by the same deadline. The new plan includes stronger roles for shareholder directors and managing directors in recovering default loans, as well as easing loan write-off policies, allowing banks to write off loans in two years instead of three. This change is expected to help cut default loans by 2.76%, or Tk43,300 crore.

February 04, 2024
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