Mamun Rashid

Bangladesh’s economy is confronting three interconnected structural vulnerabilities: a surge in non-performing loans (NPLs), weakness in revenue mobilisation and a rise in debt-dependent fiscal management. These are no longer isolated technical concerns. Together, they amount to a systemic stress test of economic governance.

After more than 35 years in commercial banking, I have seen a troubling pattern: persistently high non-performing loans, limited product innovation, weak risk management, a shortage of capable and transformational leadership, and undue interference by owner directors.

Over nearly four decades, through persistence and sacrifice, Bangladesh has become a reliable exporting nation.

I worked with senior officials at Bangladesh Bank in developing the framework for the 2025 Bank Resolution Act, which is similar to India’s Insolvency and Bankruptcy Code, 2016, and analogous frameworks in Indonesia and a few other comparable economies.

A national budget is not merely a financial plan. It reflects political commitment and sets the direction of travel.

We often confuse charity with CSR (corporate social responsibility), and label all sorts of activities as CSR.

For years, businesses in Bangladesh have struggled with an invisible but formidable opponent: a web of outdated, inconsistent and burdensome regulations.

Amid the prevailing Middle East crisis and economic lull, Bangladesh is heading into a prolonged holiday period around Eid-ul-Fitr.

From two Eids to Durga Puja, Pahela Baishakh, Pahela Falgun and even Christmas, the calendar in Bangladesh is filled with occasions that bring people together in celebration.

There is a particular kind of courage that does not announce itself. It does not arrive with fanfare or a formal declaration.

It is a very tough exercise for our central bank to arrive at an optimal exchange rate and interest rate and, more importantly, ensure adequate liquidity in the market for credit creation without denting market discipline.

The new government has inherited a financial system burdened by three interrelated weaknesses: poor governance, fragile balance sheets and erosion of public trust in policy decisions and credibility.

The new government takes office at a time when Bangladesh’s banking sector is adrift after years of widespread plunder.

Following the recent conclusion of a trade agreement between India and the European Union, and the prospect of tariff reductions under a US-India bilateral trade deal, fresh concerns have emerged among Bangladeshi exporters.

While I was auditing Indonesia during the Asian financial meltdown, a senior colleague asked me if I had seen any branches of Goldman Sachs or Bankers Trust.

One of the deepest wounds in the economy today lies in the banking sector.

The Bangladesh Investment Development Authority chairman recently said that foreign direct investment has increased significantly, and he hinted that the return of Tarique Rahman could strengthen investor confidence.

The major causes of the multifaceted crises facing the country in the recent past have largely been the shortage of foreign currency and the continuous depletion of foreign exchange reserves.

Bangladesh’s economy showed signs of consolidation in 2025. Market liquidity, especially foreign currency liquidity, improved significantly, driven by a rise in wage earners’ remittances, a moderate increase in exports, and higher foreign aid disbursement. Inflation, however, continued to remain stubbornly high.

Fear seeps into markets, schools, offices, and homes.