Sangsad Bhaban, June 25 -- BNP lawmaker Reza Kibria on Thursday criticized the relaxed definition of loan default saying that Bangladesh's banking system is in total shock due to the high volume of default loans.

"We have changed the definition of default loan in the banking sector. Earlier, a loan was considered defaulted if interest remained unpaid for 90 days. Now, if no interest is paid for a year, then it is treated as a default loan," he said in Parliament.

The MP, elected from Habiganj-1, made this remark, participating in the general discussion on the proposed national budget for the 2026-27 fiscal year in the House.

Drawing on his international experience, Kibria said that in the 35 countries where he had worked, a default loa...