The Bangladesh Bank has formulated a two-year action plan for the scheduled banks to reduce Tk 43,300 crore or 2.76 per cent non-performing loans (NPL) in the banking sector. Before the tenure of write-off was two years.
The Bangladesh Bank made an action plan for reforms in the banking sector till June 2026.
Abu Farah Md Nasser, Deputy Governor of the Bangladesh Bank told to the journalists in a press briefing on Sunday. Abdur Rauf Talukder, Governor of the Bangladesh Bank presided over the meeting also.
He said “We have taken 11 clauses to reforms the banking sector. We fixed that we would decrease the NPL below 8 per cent in the banking sector. On the other hand, NPL will decrease below 10 per cent in state-owned banks and below 5 per cent in private banks in this time.”
He added if a customer who does not make regular loan repayments will be marked as a willful defaulter. These defaulters will be deprived of various benefits. They will not be able to buy new land, house, and car or even open a new business.
He said “Anonymous loans cannot be identified. So there is no exact information on how much there is. Loan information is coming out anonymously in newspapers so the central bank thinks that since something is being written, it will be identified.”
He said, “Don't let cross the limit of single borrower exposure of 25 per cent of a bank when taking a loan from a bank.
In the Bangladesh Bank’s action plan, if any banks have 100 per cent provision against the bad loan, then the banks will risk-free. This responsibility will have to take directly by the managing director and executive directors of the bank to recover the write-off loans as well. Bank will set a unit name is ‘depreciation debt collection unit’.
However, several weak banks will merge with comparatively a strong bank; in terms of the employees of these banks will not be sacked in the next three years. As a result, the board will be strong, decrease the deficit of capital shortfall and administrative expenditure will reduce.
Abu Farah Md Nasser said “We have been investigating the classified loan for the last three years. After that we decided the action plan. Independent directors can’t hold the share of the bank. That means they will work this position as their additional responsibilities.”
He added Currently, the number of 72,543 cases are pending in the Money Debt Court. The regulatory body feels that if the existing legal team or law department of the banks is strengthened, the cases will be settled quickly.
