Bangladesh has become Asia’s leading country in non-performing loans (NPLs), with 20.2% of its total loans turning non-performing in 2024, according to the Asian Development Bank. NPLs reached $20.27 billion, a 28% increase from last year, highlighting weaknesses in the banking system. Experts cite lax policies, political influence, and inadequate recovery measures as major causes. ADB warns that global economic and geopolitical risks could worsen the situation, urging stricter laws, market reforms, transparency, and active investor participation.
Bangladesh has now become the country with the highest level of non-performing loans (NPLs) in Asia. A recent report by the Asian Development Bank (ADB) states that in 2024, 20.2% of the country’s total distributed loans turned non-performing.
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