Dhaka, July 19 -- Bangladesh's banking industry remains under considerable strain due to high credit risks, a fragmented system, and weak governance across certain lenders, and is expected to stay under pressure through 2026, according to Standard & Poor's (S&P) Global Ratings.

In its latest midyear outlook, the global credit rating agency assessed Bangladesh's banking system with a score of 9.0 on its Banking Industry Country Risk Assessment (BICRA) scale, which ranges from 1.0 (lowest risk) to 10 (highest). This rating places Bangladesh among the riskiest banking sectors in the Asia-Pacific region, alongside only three other economies: Mongolia, Cambodia, and Vietnam.

By contrast, banking systems in Singapore, Australia, and Hong Kong...