An internal report of Bangladesh Bank (BB) has identified significant exposure of the country’s banking sector to high-risk defaulted loans linked with six large business conglomerates, raising concerns over financial stability.According to the report, a substantial portion of classified loans in the banking system is concentrated among these major corporate groups, increasing systemic risk for the sector. Officials warned that if these loans are not properly managed or recovered, they could further weaken banks’ balance sheets.The central bank has reportedly been monitoring the situation closely and is considering policy measures to reduce the risk, including tighter loan supervision and improved recovery mechanisms.The report highlights that concentrated loan exposure to a few large groups remains a persistent vulnerability in Bangladesh’s financial system, potentially affecting overall liquidity and banking health if defaults continue to rise.
