Dhaka, May 20 -- Corporate Credit: The Great Gamble

Relaxed loan caps: Bangladesh Bank has raised the single-borrower credit limit to 25 percent of a bank's capital, allowing major corporate borrowers to access significantly larger loans.

Risk decoupling: Banks with non-performing loan (NPL) ratios as high as 10 percent can now allocate up to half their total advances to large loans -- a facility previously restricted to banks with NPL ratios below 3 percent.

Inflation risk: Economists warn that fresh liquidity injections through these rules and Tk 210 billion in refinancing support could intensify inflation, which has remained above 9 percent despite prolonged monetary tightening.

Systemic fragility: Allowing financially distressed b...