A file photo shows the Bangladesh Bank headquarters in the capital Dhaka. The accumulation of non-performing loans poses additional threats to the financial sector’s stability, according to a Bangladesh Bank report. — New Age photo
The accumulation of non-performing loans poses additional threats to the financial sector’s stability, according to a Bangladesh Bank report.
The central bank made the observation in its quarterly report for April-June 2023, which was published on October 5.
According to the report, the gross NPL ratio to total loans rose from 8.8 per cent in March 2023 to 10.1 per cent in June 2023, which remained a concern, necessitating closer monitoring of the defaulted loans.
According to the BB data released on October 1, the amount of defaulted loans soared to Tk 1,56,039 crore at the end of June 2023 from Tk 1,31,620 crore in March 2023 and Tk 1,20,656 crore at the end of December 2022.
The ratio of non-performing loans to total loans…
