Investor Presentaiton
Independent Review of
RBD
Bangladesh's Development
Introduction
A strong financial sector is key to higher economic growth. The banking sector,
which is the dominant sub-sector within the financial sector, has traditionally
been contributing to Bangladesh's private investment, trade, commerce, and
employment generation.
□ However, due to lack of reforms, the banking sector is facing severe challenges,
including high loan defaults, low profitability, and poor management.
☐ The COVID-19 pandemic is apprehended to intensify these pre-existing
challenges, including higher non-performing loans (NPLs)
☐ However, due to longstanding moratorium on loan classification during the
pandemic, the currently available data may be under-estimating the actual level of
NPL in the banking sector.
☐ Since the highest share of COVID-19 related liquidity support has been offered to
large industries, there are apprehensions that there could be ingenuine borrowers
who were not actually affected by the pandemic
☐ This section presents the performance of the banking sector through a set of
banking and monetary indicators.
CPD (2022): State of the Bangladesh Economy in FY2021-22 (Third Reading)
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