As Bangladesh advances toward upper-middle-income status, the resilience and credibility of its banking sector will define the nation’s growth trajectory, according to the editorial of the latest News Bulletin (Oct-December 2025) released today by the International Chamber of Commerce-Bangladesh (ICCB).
The ICCB report described the banking system as the backbone of Bangladesh’s economic journey, responsible for mobilizing savings, financing trade, and generating employment.
However, the editorial warned that the sector currently stands at a critical inflection point, facing significant structural challenges that require urgent governance reforms and a strong, autonomous central bank.
The most pressing concern highlighted in the report is the massive accumulation of non-performing loans (NPLs). The total volume of NPLs has reached over Tk 6.44 lakh crore, constituting approximately 35.7 percent of all outstanding loans—a figure the ICCB describes as an alarming level by international standards.
The editorial noted that these excessive NPLs weaken bank balance sheets, reduce lending capacity, and discourage new investment, ultimately posing serious risks to the broader macro-economy.
While recent regulatory actions have forced banks to report defaulted loans more accurately, the ICCB emphasized the need to distinguish between willful default and genuine business distress to ensure that deliberate financial misconduct is addressed firmly while viable enterprises receive support.
In a move described as the largest in Bangladesh’s financial history, the Bank Resolution Ordinance 2025 was recently enacted to handle distressed financial institutions. Under this new framework, five Shariah-based banks were consolidated into a single state-owned entity to stabilize systemic risk and safeguard depositors.
While acknowledging that consolidation can reduce contagion risk, the ICCB noted that experts have raised questions regarding shareholder approval under the Companies Act for merging publicly listed companies. The editorial stresses that the success of such measures relies on accountability, improved governance and modern risk-management standards.
The ICCB report placed heavy emphasis on the necessity of a strong, professional, and independent Bangladesh Bank. Global experience suggests that an independent central bank is essential for handling financial pressures, maintaining economic confidence, and attracting investment.
Over the past two years, Bangladesh Bank has implemented extraordinary measures—including liquidity support and refinancing facilities—to protect depositors and preserve stability during financial stress. However, the report asserts that while emergency funding is useful during crises, long-term health depends on strong governance and prudent lending
To support Bangladesh’s goals of export diversification, technological innovation, and infrastructure development, the financial system must evolve. The ICCB called for strict action against willful defaulters, globally aligned compliance standards, and continuous regulatory capacity building.
The editorial concluded that building resilience is not solely the job of regulators but requires the constructive support of bank boards, management, policymakers, and the business community to create a financial system that commands domestic and international trust.