As many as 24 significant loan scams have claimed more than Tk 92,261 crore out of the banking industry since 2008, according to the Centre for Policy Dialogue (CPD).
The independent think tank provided the figure for financial sector embezzlement by gathering media reports from 2008 to 2023, it stated at a press conference on Sunday to discuss its assessment of Bangladesh`s economic situation for the fiscal year 2023–2024.
According to the CPD, non-performing loans (NPLs) continue to grow out of control, endangering the stability of the financial system.
The think-tank also said, Bangladesh`s banking industry has continuously shown vulnerability, mostly as a result of poor governance and a lack of reforms.
"Its shortcomings have been repeatedly made clear by high loan default rates and poor performance on a range of metrics. There are serious risks to the economy as a whole because of this inherent fragility," CPD Executive Director Fahmida Khatun said.
The total amount of bad loans has reportedly increased over the past ten years by more than three times, from Tk 42,725 crore in the fourth quarter of the 2011–2012 fiscal year to Tk 156,040 crore in the fiscal year 2022–2023.
However, the CPD stated that the actual number of bad loans will be significantly higher.
