Dhaka, April 13 -- Bangladesh's banking sector has arrived at a critical crossroads. Currently, the financial landscape is strained by a triad of systemic challenges: high non-performing loans, a widening capital shortfall, and the crowding out of private investment by heavy government borrowing. These challenges are not isolated incidents but rather the cumulative result of prolonged gaps in governance, enforcement, and institutional accountability.

As of September 2025, Bangladesh's Gross NPL ratio had escalated to 35.73%, painting a stark picture of poor asset quality. This figure is particularly concerning when viewed in a regional context, as it stands in sharp contrast to the significantly lower ratios maintained by neighbouring pe...