TOUHIDUL ALAM KHAN

Can ‘bridge banks’ act as a ‘financial ambulance’ for ailing banks?

Bangladesh’s banking sector, once celebrated for its contribution to economic growth, is currently facing a crisis. The sharp increase in non-performing loans (NPLs), severe liquidity issues, and persistent governance scandals have placed several banks on the brink of failure. This precarious situation not only threatens the stability of the financial system but also undermines public trust. In such a challenging environment, the concept of “bridge bank” emerges as a potential solution.

6d ago
April 9, 2025
April 9, 2025

Can ‘bridge banks’ act as a ‘financial ambulance’ for ailing banks?

Bangladesh’s banking sector, once celebrated for its contribution to economic growth, is currently facing a crisis. The sharp increase in non-performing loans (NPLs), severe liquidity issues, and persistent governance scandals have placed several banks on the brink of failure. This precarious situation not only threatens the stability of the financial system but also undermines public trust. In such a challenging environment, the concept of “bridge bank” emerges as a potential solution.