Bangladesh : Selected Issues.

This Selected Issues paper analyzes the performance of state-owned commercial banks (SOCB) in Bangladesh. Bangladesh's experience with the SOCBs is not unique: the SOCBs have been underperforming in comparison to private banks and foreign-owned banks. Large nonperforming loans (NPLs) imply that...

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Bibliographic Details
Corporate Author: International Monetary Fund. Asia and Pacific Dept
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2018.
Series:IMF Staff Country Reports; Country Report ; No. 2018/159
Online Access:Full text available on IMF
Description
Summary:This Selected Issues paper analyzes the performance of state-owned commercial banks (SOCB) in Bangladesh. Bangladesh's experience with the SOCBs is not unique: the SOCBs have been underperforming in comparison to private banks and foreign-owned banks. Large nonperforming loans (NPLs) imply that a large amount of the savings is being wasted by financing lossmaking activities, and therefore becomes unavailable for financing productive investments. High NPLs and the need for provisions also increase the cost of credit to good borrowers, further dampening investment and growth. Resolute steps are required to resolve the SOCBs' weak performance, reflecting empirical evidence and mixed results from the previous efforts.
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Physical Description:1 online resource (39 pages)
Format:Mode of access: Internet
ISSN:1934-7685
Access:Electronic access restricted to authorized BRAC University faculty, staff and students