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Md Main Uddin

  • professor and former chairman of the Department of Banking and Insurance in Dhaka University.
  • Sun, 28 Jan 24
Dr Md Main Uddin is professor and former chairman of the Department of Banking and Insurance in Dhaka University.
Detrimental impact of defaulted loans on banking sector
Detrimental impact of defaulted loans on banking sector

Bank

Sun, 28 Jan 24

Detrimental impact of defaulted loans on banking sector

The prevalence of non-performing loans (NPLs) in Bangladesh's banking sector is a widely discussed issue, and it is not confined to causing problems only for banking accounts. Rather, it has evolved into a complex problem affecting our national economy. About 86 percent of economic transactions in Bangladesh occur through the banking system. Consequently, if there are issues with banking accounts, these problems have a ripple effect on the entire economy. If non-performing loans in the banking sector were to reach their current levels, banks would be able to contribute more efficiently to the national economy. Many of the mega projects we are implementing could have been completed with this defaulted loan (TK 1 lakh 56 thousand 039 crore).