Credit demand in the private sector of Bangladesh has virtually ground to a halt, hitting its lowest level since at least 2004, indicating a distressed business and investment situation.
Steady growth in remittance inflow has helped the interim government arrest the decline in foreign currency reserves, leading many to wonder why the remitters are sending more and more money back home.
The country’s foreign exchange market is stabilising thanks to a surge in US dollar (USD) inflows, driven by higher remittances, stronger export earnings and tighter oversight by the central bank.
Of the 35 NBFIs in the country, a dozen are currently struggling to repay depositors due to an acute liquidity crisis
The Bangladesh Bank (BB) has drafted a Deposit Protection Ordinance, proposing a maximum payout of Tk 2 lakh per depositor if a bank undergoes liquidation. The limit will be reviewed every three years.
Islamic wings of conventional banks have become the preferred choice for religiously inclined depositors as many full-fledged Shariah-based banks struggle with a crisis of trust.
At the end of last year, defaulted loans in the banking sector stood at Tk 345,765 crore, with those state-run and private commercial banks holding the majority.
It happened in just two days. A Nabil Group employee and a relative of its chairman own the firm.
Defaulted loans in the country’s banking sector reached a record Tk 3,45,765 crore at the end of 2024 as toxic loans increased sharply following the political changeover in August last year.
“Mansur is a knowledgeable and well-intentioned governor, but given the sector’s sensitivity, he should exercise extreme caution in his public remarks”
Nazrul Islam Mazumder, chairman of Nassa Group and a close associate of deposed prime minister Sheikh Hasina, holds assets worth £43.23 million or about Tk 656 crore in the UK, according to the Bangladesh Financial Intelligence Unit.
A meeting between BFIU and managing directors of the banks made the decision
The Bangladesh Bank (BB) has uncovered serious irregularities at Al-Arafah Islami Bank, including misuse of its corporate social responsibility (CSR) funds.
Says Md Mehmood Husain, independent director and current chair of the bank
The Bangladesh Bank (BB) has maintained its tight monetary policy stance for the second half of the current fiscal year (FY) 2024-25 to tame the stubbornly high inflation.
Janata Bank’s defaulted loans surged to a record Tk 67,300 crore by the end of last year, as politically exposed persons and business conglomerates became defaulters following the recent political changeover, reflecting the fragile condition of the state-run bank.
Nazrul Islam Mazumder, chairman of Nassa Group and a close associate of deposed prime minister Sheikh Hasina, has been accused of trade-based money laundering amounting to Tk 16,000 crore by the Bangladesh Financial Intelligence Unit.
Padma Bank, formerly Farmers Bank, has sunk into such a financial abyss that the lender is struggling to pay its employees’ monthly salaries and has sought a Tk 5,000 crore bailout package from Bangladesh Bank to stay afloat.
