Bangladesh Bank (BB) expects visible improvements in banks' financial conditions by March-April 2027 through reforms restoring stability, governance and normal credit flows, Deputy Governor Dr Md Habibur Rahman said on Wednesday.
Addressing the Bangladesh Institute of Bank Management's 11th Annual Banking Conference 2026, he said initial steps settled external liabilities, stabilised the exchange rate and built reserves covering nearly six months of imports.
Along with chief guest Dr Wahiduddin Mahmud, World Bank's Jean Pesme, BAB's Mohammad Abdul Hai Sarker and ABB's Mashrur Arefin were also present at the ceremony.
Non-performing loans fell from 36 per cent in December 2025 to 31 per cent, with further drops expected by December under the Money Loan Court and Special Asset Management acts. Asset quality reviews are complete in 15 banks and ongoing in others with World Bank support.
Working with the Finance Ministry on capital shortfalls, BB plans to amend the Bangladesh Bank Order, form a Bank Restructuring and Resolution Fund for weak institutions and implement a non-inflationary Tk 60,000 crore asset-rearrangement package.
Deputy Governor also urged board independence, cash-flow lending, corporate restructuring, cybersecurity, and stress testing against export, energy, currency and deposit shocks, while announcing an inclusive payment system next year alongside BEFTN, RTGS, NPSB and Bangla QR.
Source: BSS