Dhaka, Feb. 26 -- Experts at a workshop on the monetary policy statement warned that deep-rooted governance failures, a surge in non-performing loans (NPLs) and weak policy coordination have emerged as major threats to stability of Bangladesh's banking sector.

They revealed that the actual NPL ratio has climbed to 35.7 per cent -- far above previously reported levels -- underscoring the urgent need for transparency and structural reform.

Experts also cautioned that ad hoc implementation of monetary policy, coupled with a fiscal-monetary disconnect, is undermining inflation control and eroding public confidence.

The observations were made at a workshop titled "Monetary Policy Statement: Relevance for Banks", organised by the Bangladesh ...