‘Governance, NPLs are burning issues of banking sector’

Business Desk :
Corporate governance and non-performing loans are the burning issues in the banking sector now, Bangladesh Bank Governor Abdur Rouf Talukder said on Wednesday.
“Enforcing prudential guidelines and strong rules of the top management like chief executive officers of banks may only solve the NPLs in the country,” he said.
He made the comments as the chief guest at a two-day summit organised by the Association of Bankers, Bangladesh (ABB) titled “Banking on Digital Transformation” at Pan Pacific Sonargaon in the capital.
“We need to bring in cultural changes and enforce ethics and good practices in the banking sector. So training and proper education should be offered to the workforce,” Talukder said.
Default loans in the banking sector increased 16.8 per cent year-on-year to Tk 120,656 crore in 2022.
Bangladesh Bank is emphasising digitalisation of the existing system and soon it will introduce a digital bank in the country, he said. The central bank is also planning to introduce an online and real-time based credit scoring system very soon, he said.