Divya Delhi : Bangladesh has emerged as the country with the world’s second-highest bad loan rate after war-torn Ukraine, highlighting growing concerns over the health of its banking sector. The latest financial data indicates that the country’s non-performing loans (NPLs) have surged significantly, reflecting persistent challenges in loan recovery and financial governance. Analysts attribute the rise in bad loans to a combination of weak regulatory oversight, prolonged repayment defaults, economic headwinds, and inadequate enforcement against wilful defaulters. The deteriorating asset quality has raised concerns about the stability of Bangladesh’s financial institutions and their ability to support sustainable economic growth. The increase in non-performing loans has also placed additional pressure on banks, limiting their capacity to extend fresh credit to businesses and consumers. Financial experts have called for stronger banking reforms, improved governance, stricter loan monitoring, and enhanced recovery mechanisms to address the growing crisis. With only conflict-hit Ukraine reporting a higher bad loan ratio, Bangladesh now faces mounting pressure to restore confidence in its banking system. Policymakers are expected to intensify efforts to strengthen financial discipline and implement reforms aimed at improving the resilience of the country’s banking sector.
