Bangla Bad Debt Growing Fast
World Economy

Bangla Bad Debt Growing Fast

The study by LR Global Bangladesh says the country has the highest share of non-performing loans and lowest capital adequacy ratio, compared to its peer economies. Bad debt grew faster than credit in the last five years, according to the asset management firm, an affiliate of New York-based LR Management Investments, bdnews reported. The aggregate credit grew at a compound annual growth rate of 13% between 2012 and 2016, mostly in tandem with the nominal GDP growth. By the end of 2016, non-performing, restructured and rescheduled loans stood at 17% of total outstanding loans, according to the report. The high loan defaults mean that the financial sector lacks the funds to absorb any sudden deterioration of asset quality, the report says. It says non-performing loans grew at a faster pace in private banks than in the state-owned lenders in the last five years. The state banks have failed to improve their capital position, asset quality and profit scenario despite recapitalization by the government in the past nine years.


Short URL : https://goo.gl/FxiXwb
  1. https://goo.gl/mnscNf
  • https://goo.gl/QMekyo
  • https://goo.gl/yXLBbS
  • https://goo.gl/hLqyN3
  • https://goo.gl/SpKxs6

You can also read ...

WB Predicts Myanmar Growth at 6.7 Percent
Given the government’s efforts to accelerate reforms and to...
New export orders in European manufacturing PMIs have been slipping for months and are likely to fall further in May.
While the on-again, off-again threat of an all-in trade war...
Economists say the rise in rates would be much steeper if markets believed that Italy was actually prepared to go through with the plans. So far (the market reaction) has been clear, but not extreme.
The European Union's budget commissioner says he hopes Italy's...
South Korea has ranked 5th with 1.1% expansion.
South Korea’s economic growth rate ranked fifth among members...
Poland to Become Less Dependent  on EU Funds
The Polish economy will become less and less dependent on the...
Talent Deficit May Hit Major APEC Economies
Asia Pacific faces an imminent labor shortage of 12.3 million...
Qatar Bans Goods From S. Arabia, UAE, Bahrain, Egypt
Qatar is stripping shop shelves of goods that come from rival...
N. Korea Not Seeking US Aid
North Korea on Sunday fumed at US reports that the country is...

Add new comment

Read our comment policy before posting your viewpoints