Economic Reporter :
Excess liquidity and Non-Performing Loans (NPL) are posing threats to the improvement of banking sector, said speakers at a function in the city recently expressing their concerns over the issues.
While addressing a workshop on the progress and weakness of credit operations of banks in 2016, bankers and economists said the country’s banking sector saw a moderate resilience in the current fiscal year and supported real economy to post around 7 percent growth rate throughout the year.
The total outstanding amount of loans and advances of the banking and non-banking financial institutions, as they told, was Tk685,264 crore over the same period.
Bangladesh Bank Deputy Governor Abu Hena Mohd Razee Hassan said: “The market has been gripped by excess liquidity, causing the central bank to increase the volume of 7-day, 14-day and 30-day bills in the ongoing fiscal year to help balance over all market liquidity.”
The NPL ratio issue turned out to be a serious concern as it jumped to 10.1 percent at the end of June, 2016 up from 8.8 percent in 2015, he added.
Excess liquidity and Non-Performing Loans (NPL) are posing threats to the improvement of banking sector, said speakers at a function in the city recently expressing their concerns over the issues.
While addressing a workshop on the progress and weakness of credit operations of banks in 2016, bankers and economists said the country’s banking sector saw a moderate resilience in the current fiscal year and supported real economy to post around 7 percent growth rate throughout the year.
The total outstanding amount of loans and advances of the banking and non-banking financial institutions, as they told, was Tk685,264 crore over the same period.
Bangladesh Bank Deputy Governor Abu Hena Mohd Razee Hassan said: “The market has been gripped by excess liquidity, causing the central bank to increase the volume of 7-day, 14-day and 30-day bills in the ongoing fiscal year to help balance over all market liquidity.”
The NPL ratio issue turned out to be a serious concern as it jumped to 10.1 percent at the end of June, 2016 up from 8.8 percent in 2015, he added.
