Dhaka, April 13 -- International Chamber of Commerce Bangladesh (ICCB) President Mahbubur Rahman on Monday warned that nearly half of the banks in Bangladesh are on the verge of bankruptcy, raising serious concerns over the stability of the financial sector.

"Almost half of the country's banks are in a situation where they could go bankrupt," he said, noting that the risk extends to all state-owned banks as well. Despite this, no bank has formally entered bankruptcy proceedings due to weak enforcement of banking and insolvency laws, allowing troubled institutions to continue operating.

He pointed out that state-owned banks, due to their large size, carry significant liabilities, making the risks even more pronounced.

Mr Rahman made the...