Bankers demand public shaming of loan defaulters
In a letter sent to Bangladesh Bank Governor Ahsan H Mansur, ABB Chairman Mashrur Arefin outlined a series of proposals aimed at restoring discipline and improving cash recovery amid mounting stress in the sector.
The Association of Bankers, Bangladesh (ABB) has submitted a series of aggressive proposals to the central bank, seeking authority to publicly shame loan defaulters and impose strict administrative curbs to curb soaring non-performing loans and accelerate recovery in the banking sector.
At the heart of the ABB's proposal is a demand for central bank approval to publish the names and photographs of loan defaulters in the public domain.
In a letter sent to Bangladesh Bank Governor Ahsan H Mansur, ABB Chairman Mashrur Arefin outlined a series of proposals aimed at restoring discipline and improving cash recovery amid mounting stress in the sector.
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The recommendations were prepared following guidance provided at a meeting chaired by Deputy Governor Mohammad Kabir Ahmed on 12 November 2025.
According to central bank data, classified loans in the banking sector reached an all-time high of Tk6.44 lakh crore as of 30 September 2025, accounting for 35.73% of the total Tk18.04 lakh crore in disbursed loans.
The figure marks a sharp rise from Tk6.08 lakh crore in June and Tk4.20 lakh crore in March, largely due to stricter loan-classification rules and the recognition of previously concealed bad loans.
The ABB also called for a blanket ban on overseas travel for defaulters unless explicitly permitted by a court or the bank concerned.
It also called for ensuring that individuals with defaulted loans are legally ineligible to participate in any trade association or business body elections.
Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, strongly endorsed the ABB moves. "In the 1990s, we saw foreign banks and even the parliament publicly naming defaulters. It is a logical and necessary step," he said.
He questioned how defaulters continue to hold positions of influence. "How can those who have defaulted on loans participate in association elections or attend policy seminars? They should be excluded from state and social programmes. We need to tackle this as a social issue as much as a financial one."
