Nearly half of loans in 10 banks flagged as risky: Cenbank report
Banking sector insiders said that in several cases, lending rules, including single borrower exposure limits, were not properly followed, particularly in relation to large industrial groups.
Nearly one in every two taka lent by the 10 banks among the country's lenders is now considered a risky asset, according to a new central bank report that highlights severe systemic deterioration in the country's banking sector.
The Bangladesh Bank's Financial Stability Report, published on Tuesday (16 June), shows that risky loans at the 10 banks accounted for 47.75% of total lending at the end of December 2025, up from 42.96% in 2024. The report, however, does not identify the specific banks included in the analysis.
Speaking to TBS, experts said the trend reflects long-standing weaknesses in loan governance and recovery practices in the banking sector.
They noted that influential business groups obtained large loans from multiple banks and subsequently failed to repay them on time, contributing to a build-up of non-performing assets over time.
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Banking sector insiders said that in several cases, lending rules, including single borrower exposure limits, were not properly followed, particularly in relation to large industrial groups.
They alleged that some groups created shell companies with compliant documentation to access funds, while the ultimate beneficiaries of such loans were not always clearly identified.
They further said that in many cases, both bank boards and officials were aware of the true beneficiaries but did not carry out adequate due diligence.
Bankers said that a combination of regulatory weaknesses and political influence over time allowed certain business groups to accumulate large volumes of credit across multiple banks.
They added that some of these loans later turned non-performing as repayment obligations were not met.
Former Bangladesh Bank governor Ahsan H Mansur had previously said more than Tk1 lakh crore may have been withdrawn from several private banks under the control of a major business group during the previous political administration.
He also said additional borrowing from state-owned banks by Chattogram-based S Alam Group remained largely unpaid.
