Md Main Uddin

Plagued with a huge amount of non-performing loans (NPLs), capital deficiency, provision shortfall, management inefficiency, and other issues, Bangladesh’s banking sector is indeed in an extremely vulnerable state.

"Financial inclusion" has been a buzzword in Bangladesh for many years.

To attain viability, banks must manage the various risks they encounter in this process of intermediation.

Burdened with massive NPLs, many banks have been facing a serious crisis, failing to carry out their daily operations.

The evaluation was introduced in 2024, assessing 20 organisations based on their audited financial statements for FY2022-23.

The poor are still reliant on informal credit markets, which can be exceedingly exploitative.

There are many practical reasons why a certain segment of the population prefer the informal credit market.

A good bank ensures quality of loans (assets) by selecting the right borrowers, sanctioning loans to various sectors in different sizes, and keeping collateral.