Bangladesh Bank Governor Ahsan H. Mansur announced that no bonuses will be issued at loss-making banks.
“Banks with capital below 10% and provisioning losses cannot declare dividends or bonuses,” he said, adding that loans overdue for three months would be classified as non-performing.
Mansur noted improvements in financial discipline, including a sharp decline in hundi transactions that once siphoned off 30% of remittances. He also confirmed that the central bank bought $1 billion in dollars last month without causing a price spike.
Despite progress, he admitted concerns over inflation and warned that 30% of loans may default by June. Talks with the government on merging five troubled banks will begin Sunday.