The World Bank’s Executive Board has approved $450 million in financing for Bangladesh to reinforce the foundation of its banking sector, aiming to revive economic growth and create jobs. The funding, under the “Financial Sector Support Project-2,” will enhance deposit protection for small savers, improve Bangladesh Bank’s supervisory capacity, and support restructuring of state-owned banks. The announcement was made through an official press release on June 24, 2026.

According to the World Bank, the project will increase the capital of the Deposit Protection Fund, establish an effective emergency liquidity support framework, and modernize Bangladesh Bank’s ICT infrastructure to address cybersecurity risks and data gaps. The initiative comes amid rising stress in the banking sector, where non-performing loans reached 32.6 percent by March 2026, far above the South Asian average of 7.9 percent, and the capital adequacy ratio stood at negative 2.6 percent by December 2025.

World Bank officials stated that the project, part of a coordinated effort with the IMF and Asian Development Bank, will help restore confidence, strengthen crisis preparedness, and enhance the resilience of Bangladesh’s financial system.