The study by LR Global Bangladesh says the country has the highest share of non-performing loans or NPL and lowest capital adequacy ratio or CAR, compared to its peer economies. Bad debt grew faster than credit in the last five years, according to the asset management firm, an affiliate of New York-based LR Management Investments. By the end of 2016, non-performing, restructured and rescheduled loans stood at 17 percent of total outstanding loans, according to the report. The high loan defaults mean that the financial sector lacks the funds to absorb any sudden deterioration of asset quality, the report says. It says non-performing loans grew at a faster pace in private banks than in the state-owned lenders in the last five years.

Source: bd News24 December 03, 2017 13:52 UTC