We must remember that the consequences of bad policy choices are not immediately visible; sometimes, they emerge after years, but when they do, the effects become systemic and unbearable.

It is the weakest in South Asia as hidden bad loans surfaced after 2024 political changeover

Distressed loans in the banking sector soared 44.3 percent year-on-year to a record Tk 10,91,848 crore in 2025, reflecting the sector’s deepening fragility.

"The financial sector we have inherited is a matter of serious national concern," he said

As per BB’s order, the bank’s total exposure to a single borrower or group is restricted to 25 percent of its capital.

Private sector credit growth fell to 4.72 percent -- a record low -- in March, marking another month of slowdown.

The finance minister said economic management and related institutions in Bangladesh have grown increasingly ineffective

One of the main reasons why the Awami League government was dethroned is the mishandling of the banking sector.

Faruk Hasan lies bedridden in his home, recovering from bypass surgery. The 64-year-old heart patient needs regular medication to stay alive, but he cannot access the money to pay for it. His life savings -- Tk 80 lakh in fixed deposits -- remain frozen at Aviva Finance, a financial institution now on the verge of liquidation.

CPD said Bangladesh is at a ‘critical juncture of its journey'

When bankers entered the new year and opened their books for 2025, many quickly realised that the scale of long-buried damage was too large to hide any longer.

Defaulted loans in the banking sector rose further to Tk 6.44 lakh crore, or nearly 36 percent of total disbursed loans, at the end of September, indicating the continued fragile state of the country’s financial sector.

Bangladesh's banking sector faces a Tk 1.71 lakh crore capital shortfall

Banks have several layers of professionals to regularly assess their financial health and raise early warnings at the first sign of trouble.

Around a dozen banks are currently struggling to repay depositors, eroding public trust

State-owned, Islamic Shariah-based, and specialised banks have seen deeper deterioration in their financial positions, whereas private commercial banks and foreign banks remain on firmer ground.

Bangladesh’s banking sector faces significant challenges due to longstanding structural weaknesses and recent emerging risks, according to the World Bank (WB).

The Bangladesh Bank will be able to sell or liquidate weak banks by forming bridge banks—financial institutions that temporarily take over a failed bank, according to the draft Bank Resolution Ordinance.

Bangladesh Bank (BB) has extended a total of Tk 12,500 crore in emergency funds to three beleaguered banks to dress up their balance sheet ahead of the year’s end. 

In October, a video on social media showed the manager of Social Islami Bank’s Agargaon branch breaking down in tears after enduring harsh verbal abuse from frustrated customers seeking to withdraw cash.