Many wilful defaulters exploit legal loopholes: BAB chairman | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Friday
June 13, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
FRIDAY, JUNE 13, 2025
Many wilful defaulters exploit legal loopholes: BAB chairman

Bangladesh

TBS Report
18 September, 2024, 10:40 pm
Last modified: 18 September, 2024, 10:46 pm

Related News

  • ICCB recommends forming task force to tackle US tariff issue
  • Abdul Hai Sarker elected as Chairman of Bangladesh Association of Banks
  • Abdul Hai Sarkar becomes BAB chairman
  • Bangladesh Association of Banks urges BB to relax restrictions on LC opening
  • Large borrowers too can avail moratorium repaying 15% of loan

Many wilful defaulters exploit legal loopholes: BAB chairman

We have defaulted loans of around Tk3 lakh crore, which are difficult to recover due to weaknesses in the law, he says

TBS Report
18 September, 2024, 10:40 pm
Last modified: 18 September, 2024, 10:46 pm
Many wilful defaulters exploit legal loopholes: BAB chairman

Many borrowers are not repaying their bank loans and have thus become wilful defaulters, despite having operational businesses, said Abdul Hai Sarkar, chairman of the Bangladesh Association of Banks (BAB).

"We cannot retrieve defaulted loans from many borrowers due to weaknesses in the laws," he said, noting that a BAB delegation raised this issue during a meeting with Bangladesh Bank Governor Ashan H Mansur on Wednesday (18 September).

"We have defaulted loans of around Tk3 lakh crore, which are difficult to recover due to weaknesses in the law. If the laws were strengthened, we could easily recover 60% of these defaulted loans," Sarker, who headed the delegation, told reporters after the meeting.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Sarkar, also chairman of Dhaka Bank, said there has been significant improvement in the banking sector since the new governor assumed office.

"We will address the current problems together, and based on the current situation in the banking sector, we are on the right track," he said.

He noted that only six to seven banks are currently facing liquidity issues to some extent and expressed confidence that these problems will be resolved within six months, given the governor's awareness and attention to the matter.

Bangladesh Bank spokesperson Husne Ara Shikha said the BAB made several demands during their meeting with the governor on Wednesday.

In an audio message sent to journalists, she also said the BAB leaders, along with the Association of Bankers Bangladesh (ABB), requested participation in the central bank's policy-making process.

The governor responded that stakeholder consultations could be incorporated into policy development, and that policies would be formulated with stakeholder input in mind.

The spokesperson also mentioned that many defaulted borrowers have been granted relief through court stay orders, highlighting a legal weakness that needs to be addressed. In response to these demands, the governor has agreed to implement regulatory changes concerning defaulted loans.

"BAB leaders highlighted various obstacles to the governor regarding the sale of defaulting borrowers' properties in the money loan court. The governor responded that the financial loan system needs to be made more effective and that necessary measures will be taken by Bangladesh Bank in collaboration with the Attorney General's office."

The leaders also requested that policies related to banks be tailored to the culture of Bangladesh. The governor noted that banks must interact with international banks, and therefore, policies should align with international standards. Efforts will be made to reach that alignment.

The BAB leaders also demanded separate guidelines and departments for Sharia-based banks. The governor did not comment on this request.

Additionally, they requested that the central bank refrain from interfering with the salaries of bank managing directors and employees, suggesting that it should be left to the banks themselves. The governor agreed that this would be phased out gradually.

First Security Islami Bank Chairman Mohammad Abdul Mannan said, "We are in discussions with various forums to ensure that banks can access liquidity facilities within the guidelines of the Bangladesh Bank, allowing them to borrow from other banks in accordance with Sharia guidelines."

He noted that while Islami Bank was once the leader among private banks, it is currently facing some temporary challenges. However, some banks have been provided with stronger boards.

"We are hopeful that we will resolve our issues in the shortest possible time. In the future, we aim to provide liquidity support to other banks," he added.

Banking

Bangladesh Association of Banks (BAB)

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Israel says it has launched strikes on Iran amid nuclear tensions; blasts heard across country
    Israel says it has launched strikes on Iran amid nuclear tensions; blasts heard across country
  • Infographics: TBS
    Lengthy legal road ahead to repatriate Saifuzzaman's wealth from UK
  • From fact-checker to fact-checked: CA Press Wing’s turn in the hot seat
    From fact-checker to fact-checked: CA Press Wing’s turn in the hot seat

MOST VIEWED

  • Keir Starmer declines to meet CA Yunus: FT report
    Keir Starmer declines to meet CA Yunus: FT report
  • Wreckage of a Boeing 787 Dreamliner showing part of its registration "VT-ANB" in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave
    Air India Dreamliner crashes into Ahmedabad college hostel, kills over 290
  • Saifuzzaman Chowdhury. Photo: Collected
    UK crime agency now freezes assets of ex-land minister Saifuzzaman: AJ
  • File Photo of Chief Adviser Muhammad Yunus: UNB
    Prof Yunus to receive Harmony Award from King Charles today
  • Infofgraphics: TBS
    DGHS issues 11-point directive to prevent spread of Covid-19 in Bangladesh
  • Bangladesh Bank Governor Ahsan H Mansur. TBS Sketch
    Bangladesh mulls settlements with tycoons over offshore wealth: BB governor tells FT

Related News

  • ICCB recommends forming task force to tackle US tariff issue
  • Abdul Hai Sarker elected as Chairman of Bangladesh Association of Banks
  • Abdul Hai Sarkar becomes BAB chairman
  • Bangladesh Association of Banks urges BB to relax restrictions on LC opening
  • Large borrowers too can avail moratorium repaying 15% of loan

Features

Among pet birds in the country, lovebirds are the most common, and they are also the most numerous in the haat. Photo: Junayet Rashel

Where feathers meet fortune: How a small pigeon stall became Dhaka’s premiere bird market

1d | Panorama
Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

2d | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

3d | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

5d | Bangladesh

More Videos from TBS

Banks' estimates were wrong: Bangladesh Bank spokesperson

Banks' estimates were wrong: Bangladesh Bank spokesperson

11h | Podcast
What exactly happened to the ill-fated Boeing aircraft?

What exactly happened to the ill-fated Boeing aircraft?

12h | TBS World
Govt to set up Debt Office as loan burden to hit Tk29 lakh cr by FY28

Govt to set up Debt Office as loan burden to hit Tk29 lakh cr by FY28

13h | TBS Insight
Curfew imposed for second night in Los Angeles

Curfew imposed for second night in Los Angeles

13h | TBS World
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net