Dhaka, Sept. 19 -- performing loans (NPLs) in Bangladesh's banking sector is placing severe pressure on the nation's financial system, with default loans now exceeding 32 percent of total disbursements and disrupting the natural cycle of credit recycling.

National Professor Dr. Mahbub Ullah, former Professor and Chairman of the Department of Development Studies at University of Dhaka, highlighted these concerns while delivering the 23rd Nurul Matin Memorial Lecture on "Ethics in Banking," organized by the Bangladesh Institute of Bank Management (BIBM) on Saturday.

Bangladesh Bank Governor and Chairman of the BIBM Governing Board, Md Mostaqur Rahman, presided over the event. BIBM Director General Dr. Md. Ezazul Islam delivered the welcom...