Bangladesh: Selected Issues

June 8, 2018

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Bangladesh: Selected Issues, (USA: International Monetary Fund, 2018) accessed November 12, 2024

Summary

This Selected Issues paper analyzes the performance of state-owned commercial banks (SOCB) in Bangladesh. Bangladesh’s experience with the SOCBs is not unique: the SOCBs have been underperforming in comparison to private banks and foreign-owned banks. Large nonperforming loans (NPLs) imply that a large amount of the savings is being wasted by financing lossmaking activities, and therefore becomes unavailable for financing productive investments. High NPLs and the need for provisions also increase the cost of credit to good borrowers, further dampening investment and growth. Resolute steps are required to resolve the SOCBs’ weak performance, reflecting empirical evidence and mixed results from the previous efforts.

Subject: Banking, Commercial banks, External debt, Financial institutions, Government securities, Interest payments, Loans, Nonperforming loans

Keywords: Bangladesh, Bank financing, Commercial banks, CR, Europe, Export, Export diversification index, Global, Government securities, Improve SOCBs, Interest payments, ISCR, Loans, Nonperforming loans, NSC issuance, Ready-Made Garment, RMG sector, South Asia, Trade partner

Publication Details

Pages:

39
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2018/159
Stock No:

1BGDEA2018002
ISBN:

9781484360347
ISSN:

1934-7685

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