Bangladesh Bank (BB) has established a goal to guarantee corporate good governance in the banking industry by bringing the percentage of categorized loans to less than 8% of all outstanding loans in the nation by June 2026.
The central bank has created a roadmap in order to achieve this.
“The central bank aims at reducing classified loans of state commercial banks to 10 percent and private banks below 5 percent within this time,” said BB Deputy Governor Abu Farah Md Nasser at a press conference at its headquarters in the city today.
In order to reduce default debts by 2.76 percent, or Taka 43,300 crore, the central bank loosened the loan write-off policy under the new framework, allowing the banks to write off loans in two years as opposed to the previous three years.
By the end of September 2023, the banking sector’s gross classified loan ratio was 9.93 percent.
