The issue of non-performing loans (NPLs) is nothing new in the country, and this newspaper has editorialized time and time again on the issue. Unfortunately, as things stand, there appears to be very little improvement in addressing them.
In fact, while bad loans were usually attributed to state-owned banks, unfortunately, non-bank financial institutions (NBFI) have also seen a rise in NPLs, from Tk10,328 crore in its previous quarter and rising to Tk13,016cr.
This is an extremely worrying predicament; recovering loans is fundamental to the operation of any financial institution, and an accumulation of NPLs across different financial institutions threatens the entire collapse of the country’s banking sector.
While experts have rightfully pointed out that the pandemic made the repayment of loans difficult, there exist the all-too-familiar reasons that have always plagued our financial institutions, including questionable policy decisions by the authorities concerned, a weak monitoring system and, above all else, a culture of corruption and impunity that never succeeds in holding defaulters accountable.
What is most frustrating is that, year after year, these problems are highlighted, yet ultimately, we see little to no result. The institutions continue to go about their business, and the individuals, often wielding considerable influence and power, are allowed to get away with daylight robbery.
This begs the question: When will we finally be able to crack down on these defaulters, and indeed hold the institutions that are facilitating such irregularities. After all, the issue of bad loans hurts the entirety of Bangladesh first and foremost, and has remained one of the principal issues holding us back from reaching our full potential as an economy.