Although banks have already identified more than 1,500 wilful loan defaulters, the Bangladesh Bank remains indecisive over taking disciplinary action against such defaulters, exacerbating the country鈥檚 non-performing loan crisis.
Wilful defaulters are the borrowers who have the financial ability to repay their bank loans but deliberately choose not to do so.
Due to the central bank鈥檚 inaction, the wilful defaulters continue to operate largely without facing consequences, economists said.
They observed that even after the ouster of the Awami League-led authoritarian regime on August 5, 2024, in a mass uprising, the same culture of secrecy and protection for loan defaulters persisted in the country.
BB officials said that no major business group appeared on the list of the wilful defaulters.
The identified wilful defaulters are mostly found to have defaulted on relatively small-sized loans, they said.
The officials said that the central bank did not take any decision regarding sending names of wilful defaulters to the relevant government agencies to impose restrictions on such borrowers.
According to the Bank Company Act, 1993 (amended in 2023), the central bank may forward lists of wilful defaulters to relevant government agencies such as the Bangladesh Securities and Exchange Commission and the Registrar of Joint Stock Companies and Firms, with suggestions for restricting their ability to travel abroad, acquire trade licences, or register new businesses.
The law also allows the imposition of further restrictions, including preventing defaulters from purchasing cars, land, houses, or receiving any form of government recognition or award.
While the central bank did issue a circular on March 12, 2024, stating that it would begin sharing such lists with the government agencies, with the rules taking effect on July 1, it has so far failed to act on that commitment.
BB officials, however, said that about 150 of the reported wilful defaulters appealed against their status and the central bank had managed to resolve only about 10 cases due to legal and procedural complexities.
The central bank has formed a committee to resolve these cases, they said.
Bangladesh Bank executive director Areif Hussain Khan, also the spokesperson for the central bank, told 抖阴精品 that it was the responsibility of banks to first identify wilful defaulters and follow due procedures before filing criminal cases against them.
He added that while the law permitted the central bank to send the list of wilful defaulters to relevant government agencies to impose several restrictions, it was not mandatory for the central bank.
Zahid Hussain, former lead economist at the World Bank鈥檚 Dhaka office, told 抖阴精品 that there was no justifiable reason for delaying action against wilful defaulters.
He said that the central bank must act swiftly to send a strong message that deliberate non-repayments would not go unpunished.
He stressed that the restrictions already outlined in the regulations should be enforced without any delay to deter borrowers from intentionally defaulting on loans.
He expressed disappointment that even after the fall of the AL-led regime, the same culture of secrecy and protection for defaulters persisted.
Masrur Reaz, chairman of the Policy Exchange Bangladesh, an independent advisory firm, told 抖阴精品 that the Bangladesh Bank under its new governor had already completed a year 鈥� enough time to initiate decisive action against loan defaulters.
Ahsan H Mansur became the central bank governor after the 2024 political changeover.
Masrur acknowledged that the restructuring of the boards of 14 banks and the removal of corrupt or politically connected bank directors by the central bank was a commendable step towards restoring governance in the sector hit hard by mismanagement and corruption during the past regime.
However, Reaz emphasised that holding bank directors accountable was only part of the broader reform effort. 鈥楾argeting bank owners alone addresses just a fraction of the problem,鈥� he said.
鈥業t鈥檚 equally important to take action against borrowers 鈥� especially influential individuals and so-called ghost entrepreneurs 鈥� who abused their power to secure large loans without any intention of repayment,鈥� he said.
鈥榃e expect that the Bangladesh Bank will take decisive measures and hold these defaulters accountable without any further delay,鈥� Reaz stated, underscoring the urgency of addressing the issue to restore the public trust in the country鈥檚 banking sector.
The urgency of this issue is reflected in the latest NPL figures published by the central bank.
In just three months, the volume of non-performing loans in the banking sector increased by Tk聽74,570 crore, reaching a record high of Tk聽4.20 lakh crore as of March 2025.
This figure accounts for 24.13 per cent of the total outstanding loans 鈥� by far the highest in South Asia.
Experts said that the real figure might be even higher, considering the practices of underreporting during the ousted Awami League regime.
Two major business conglomerates 鈥� S Alam Group and Beximco Group 鈥� have played a significant role in the country鈥檚 default loan crisis. S Alam Group reportedly withdrew over Tk聽2.25 lakh crore and Beximco Group about Tk聽50,000 crore from the country鈥檚 banking system through both direct and anonymous channels during the ousted Awami League regime. A large portion of these loans has become defaulted, putting more pressures on the financial system and further eroding the public confidence in the country鈥檚 banking sector.
