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National Desk : | ০১:৪০ পিএম, ২০২৪-১২-২৯
Bangladesh's banking sector faced a critical year in 2024: a severe liquidity crisis & record-high non-performing loans (NPLs). Economic analysts & bankers have described 2024 as one of the worst years for the sector.
People deposit money in banks to ensure security and when they need to withdraw money. A liquidity crisis means a shortage of cash. That means when a bank falls short of cash, it can’t provide withdrawal service. When in a money shortage, it destroys depositors' trust.
Non-performing loans that are seriously past due. Typically 90 days or more. Non-performing loans are also called bad loans. Total bad loans exceeded Th 7.0 lakh crore by September. And the defaulted loan exceeded Tk. 2.84 lakh crore. Because of this crisis, there are economic & political causes. Political unrest in July & August. Floods in Cumilla, Feni, & Noakhali disrupted industrial operations and supply chains. To reduce inflation, BB decided on a policy rate of 10%, which increased borrowing costs and pushed businesses into default.
Shamiul Akram
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