Bangladesh Bank warns media

Bangladesh Bank has clarified the reports published in various media outlets on the amount of distressed loans in the banking sector. The central bank said that calculating distressed loans by adding rescheduled and written-off loans to classified loans without any internationally accepted definition may create a negative perception in the public mind about the banking sector.

This was stated in a press release sent by the Department of Communications and Publications (DCP) of Bangladesh Bank on Wednesday (June 17), warning the media.

Bangladesh Bank recently published the ‘Financial Stability Report (FSR) 2025’. The report includes information on defaulted loans, rescheduled loans and written-off loans, among other information.

Bangladesh Bank said that based on the information in FSR 2025, some media outlets have published the distressed loan rate of the banking sector as 45 percent, 59 percent or 60 percent according to their own calculations. However, no international banking policy-making organization has defined a recognized definition of distressed loans.

According to the central bank, generally, loans from which no income is generated or whose installments are not paid regularly are considered distressed loans. However, in the case of rescheduled unclassified loans, since regular installments are paid, there is no scope for considering such loans as distressed loans.

At the same time, Bangladesh Bank mentioned that according to international best practices, written-off loans are not part of the bank's balance sheet. Therefore, these loans are also not eligible for inclusion under distressed loans.

The press release said that as of December 31, 2025, the non-performing loan (NPL) or defaulted loan rate in the country's banking sector was 30.60 percent.

Bangladesh Bank also said that publishing the distressed loan account by adding rescheduled and written-off loans to classified loans may create a misconception about the banking sector. Such news can send misleading messages about the country's financial sector at the national and international levels.

For this reason, the Central Bank has called on the media to engage in responsible journalism, taking into account the national interest, objectivity, and sensitivity of the issue when publishing news related to the banking sector.