The International Monetary Fund (IMF) has expressed concern over Bangladesh’s worsening banking sector, burdened by soaring non-performing loans (NPLs). During a meeting with Bangladesh Bank officials, the IMF recommended merging or liquidating banks whose default loan ratios exceed 30%. Currently, 16 banks fall into this category, five of which are already in the process of merger. Following the IMF’s advice, Bangladesh Bank held a meeting with managing directors of 47 banks, instructing them to take urgent measures to reduce NPLs by December through rescheduling, legal action, or other means. The IMF also questioned delays in publishing accurate NPL data and sought explanations for the rising defaults. The crisis stems from years of mismanagement and corruption, prompting the central bank to initiate reforms, including relaxed rescheduling and write-off policies to stabilize the sector.