According to the Bangladesh Bank Offside Supervision latest report, the risky wealth of banking sector stood at Tk6,64,000 crore in June this year, which was Tk5,96,000 crore in the same period a year ago.
Sources at the central bank said the commercial banks gave loan to their little known clients and later, failed to recover maximum amount of those loans. “This has led to pile up risk asset,” he said.
Another source said banks are to set aside huge funds against rising risk assets which have led to swell their capital shortfalls. “The tendency weakens financial health of banks.”
According to the Bank Company Act, the biggest asset of a bank is credit, which usually accounts for 95% of the banks' total assets.
Other assets are fixed assets, including building, land and portfolio investment.
As per the Bangladesh Bank report in 2013, banks kept 9% provision against their risk assets. In June, 2016, the figure was 8.3%.
So far a total of nine banks have failed to maintain provision against their risky wealth.
Former finance adviser to the caretaker government Dr AB Mirza Azizul Islam said the government and the central bank should look into the issue for the betterment of banking sector.
Friday, March 21, 2025
