Dhaka, July 1 -- The central bank has unveiled a medium-term roadmap to reduce mounting non-performing loans (NPLs) through stricter supervision, faster loan recovery, legal reforms and adoption of internationally practised expected credit-loss standards.

"The level of NPLs remains a key focus area for the banking sector, affecting bank profitability, capital adequacy ratios, liquidity distribution, and the transmission efficiency of monetary policy," the central bank said in its latest Monetary Policy Statement (MPS) for July-December 2026 published on Tuesday.

A key element of the Bangladesh Bank (BB) medium-term roadmap is adoption of the Expected Credit Loss (ECL) framework under IFRS (International Financial Reporting Standard) 9, ...