One of the banks issued loans worth 140 percent of its depositsMore loans than deposits: 7 banks struggle as 16 exceed lending thresholdsSixteen banks in Bangladesh—both state-owned and private—are grappling with a growing financial crisis triggered by months of aggressive loan disbursement far beyond regulatory limits. According to Bangladesh Bank, all 16 institutions exceeded the Advance Deposit Ratio (ADR) limit at the end of December, with one bank reportedly issuing loans worth 140 percent of its deposits. Of the 16 banks under scrutiny, seven lent more than 100 percent of deposits, while another seven pushed the ADR limit to between 91 and 98.5 percent. Nonetheless, 11 of those institutions had already surpassed the ADR limit by December 2024. With many of these aggressively distributed loans now unrecovered, non-performing loans are piling up, heightening the banks’ financial burdens.

Source: bd News24 April 06, 2025 21:06 UTC