Investor Presentaiton
Independent Review of
RBD
Bangladesh's Development
Bangladesh Bank's Guidelines on Risk
Based Capital Adequacy state that banks
must maintain a minimum total capital
ratio of 10% (or minimum total capital plus
capital conservation buffer of 12.5%) by
2019, in line with BASEL III.
➤ However, the SCBs have failed to
maintain minimum requirements of
capital adequacy.
On the other hand, the SBs have
remained critically under-capitalised.
Without reducing NPLs,
reducing NPLs, capital
adequacy cannot be improved since
higher levels of NPLs lead to increased
provisioning requirements, which results in
capital shortfall.
Capital Inadequacy of Banks
Per cent
Figure: Capital to risk weighted asset ratios
(in %)
40
30
20
10
-10
-20
-30
-40
Mar-10
Dec-10
Sep-11
Jun-12
Mar-13
Dec-13
Sep-14
Jun-15
Mar-16
Dec-16
Sep-17
Jun-18
Mar-19
Dec-19
Sep-20
Jun-21
SCBs
SBs
CPD (2022): State of the Bangladesh Economy in FY2021-22 (Third Reading)
-PCBs FCBs All banks
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