Banks in Bangladesh continue to depend primarily on immovable assets such as land and buildings when issuing loans, according to data from Bangladesh Bank for the first quarter of 2026. About 63.74 percent of total loans, amounting to Tk 11.37 trillion, were backed by real estate collateral. This reliance has increased slightly from the previous quarter, when 63.54 percent of loans were secured by similar assets. Despite this, many of these mortgaged properties are now difficult to sell, particularly those linked to influential defaulters.

Industry insiders attribute the trend to rising irregularities and corruption in the banking sector, which have made asset-based lending appear safer. Reports indicate that some borrowers diverted loan funds to purchase more land, later using those properties for additional loans, often with inflated valuations. As a result, banks are struggling to recover defaulted loans through asset sales.

Experts and young entrepreneurs argue that this property-dependent lending culture is hindering economic diversification and limiting access to finance for startups and innovative ventures lacking tangible assets.