Bangladesh, July 1 -- The Bangladesh Bank (BB) has unveiled a comprehensive medium-term strategy to address the country's mounting non-performing loans (NPLs), combining tighter supervision, faster loan recovery, legal reforms and the adoption of international credit loss standards as part of broader efforts to restore confidence in the banking sector.
The central bank said the persistently high level of defaulted loans remains one of the most significant challenges facing the financial sector, undermining banks' profitability, capital adequacy, liquidity management and the effective transmission of monetary policy.
The assessment was published in Bangladesh Bank's Monetary Policy Statement (MPS) for the July-December period of 2026, rele...