ADB sanctions $500mn to help reform Bangladesh’s banking sector

The Asian Development Bank (ADB) today approved a $500 million policy-based loan to stabilize and reform the banking sector in Bangladesh by strengthening regulatory supervision, corporate governance, asset quality, and stability.

This information has been revealed through a notification in ADB's official website on Thursday (June 19).

The Stabilizing and Reforming the Banking Sector Programme, Sub-programme 1 will focus on policy reforms to promote finance sector resilience by enhancing banking sector governance, increasing the effectiveness of Bangladesh Bank’s liquidity management framework, and introducing immediate measures to resolve significant nonperforming loans in the banking system.

The measures under the programme will support phased compliance with international banking norms, leading to integrity in asset quality information.

"The programme will bring significant value addition through building the regulator’s capacity for ensuring compliance with international norms, augmenting the capitalization of the banking sector and improving access to affordable finance for micro, small and medium enterprises," said ADB Principal Financial Sector Specialist Sanjeev Kaushik.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Founded in 1966, ADB is owned by 69 members—50 from the region.