Over Tk 18,135 crore of loans have become defaulted in the banking sector in the last nine months of 2017 as the trend continued in the third quarter (July-September). However, now the total amount of defaulted loans in our banking sector stands at Tk 8, 0307.21 crore.
The situation is clear enough to suggest that the government is repeatedly failing to take control of the sector. And it is all happening under the very nose of the ruling party’s deliberate mismanagement as recent rescheduling of a large amount of defaulted loans of a number of business houses yielded little success. Moreover, lax monitoring of the banks amid the impunity enjoyed by habitual loan defaulters continue rampant despite repeated shocking discoveries.
The sad truth is the trend will continue until the banking sector reaches the brink of collapse as there is no strict enforcement of law in recovering the defaulted loans. The newer and dubious borrowers taking loans are becoming more encouraged to become defaulters and in the process making piling up more bad loans. On top of it, a huge number of back-log of loan cases are being delayed by stay orders from court.
Recently, business in the country is not vibrant, export earnings growth have slowed down, remittances are not coming as expected and private investments have become sluggish, and yet the government has become dangerously complacent because of higher GDP growth and higher per capita income of the country.
The point, however, the country’s banking sector is fast pacing towards an abyss of no return. And since the government is not sincerely addressing the crisis – now it’s up to the people to unite and force the government to put an end of the prevailing gross mismanagement and irregularities destroying our banking sector.
The situation is clear enough to suggest that the government is repeatedly failing to take control of the sector. And it is all happening under the very nose of the ruling party’s deliberate mismanagement as recent rescheduling of a large amount of defaulted loans of a number of business houses yielded little success. Moreover, lax monitoring of the banks amid the impunity enjoyed by habitual loan defaulters continue rampant despite repeated shocking discoveries.
The sad truth is the trend will continue until the banking sector reaches the brink of collapse as there is no strict enforcement of law in recovering the defaulted loans. The newer and dubious borrowers taking loans are becoming more encouraged to become defaulters and in the process making piling up more bad loans. On top of it, a huge number of back-log of loan cases are being delayed by stay orders from court.
Recently, business in the country is not vibrant, export earnings growth have slowed down, remittances are not coming as expected and private investments have become sluggish, and yet the government has become dangerously complacent because of higher GDP growth and higher per capita income of the country.
The point, however, the country’s banking sector is fast pacing towards an abyss of no return. And since the government is not sincerely addressing the crisis – now it’s up to the people to unite and force the government to put an end of the prevailing gross mismanagement and irregularities destroying our banking sector.
