A DECLINE in the non-performing loans recovery ratio, which is concerning, suggests that the measures taken are not effective and stringent enough. The recovery ratio of non-performing loans dropped significantly in the final quarter of 2024, with the ratio standing at 3.44 per cent, down from 5.12 per cent in the corresponding 2023 quarter, as data of Bangladesh Bank show. The decline in recovery ratio is largely because of the new classification standards and changed loan classification policies that the central bank has adopted to get the actual picture of default loans. The central bank has reduced the time frame to classify any loan as defaulted from the earlier 270 days to 180 days. Since