Changing our lending practices / BIGSTOCKWhat our policy-makers can learn from IndiaThe volume of non-performing loans (NPLs) has been persistently rising, and this presents a major problem for Bangladesh’s growth trajectory. The “waterfall mechanism” is the order of priority in which the funds from the sale of assets are distributed. To expedite insolvency resolution for start-ups, small companies and unlisted companies with assets worth less than Rs1 crore, regulations have been implemented. There have been guidelines introduced on the sale of stressed assets by banks. At a minimum, all assets classified as “doubtful assets” category above a pre-defined threshold should be covered.

Source: Dhaka Tribune June 07, 2019 14:03 UTC