NON-PERFORMING loans have become an overarching threat to the economy of Bangladesh. The plundering of money from banks is a common phenomenon in the financial sector these days. As of June 2019, the total amount of defaulted loans in the banking sector, according to the central bank, stood at 11.7 per cent of all the loans disbursed, which was 10.41 per cent in the corresponding period the year before. By the end of the 2018–19 financial year, non-performing loans stood at 4.43 per cent of the gross domestic product. In other words, if the defaulted loans were tightly controlled, the GDP growth rate would have been 4.43 per cent higher, a local think tank has claimed.
NON-PERFORMING loans have become an overarching threat to the economy of Bangladesh. The plundering of money from banks is a common phenomenon in the financial sector these days. As of June 2019, the total amount of defaulted loans in the banking sector, according to the central bank, stood at 11.7 per cent of all the loans disbursed, which was 10.41 per cent in the corresponding period the year before. By the end of the 2018–19 financial year, non-performing loans stood at 4.43 per cent of the gross domestic product. In other words, if the defaulted loans were tightly controlled, the GDP growth rate would have been 4.43 per cent higher, a local think tank has claimed.
