Bangladesh Bank Preparing Tk 20,000 Crore Fund to Overhaul Banking Sector

In a decisive move to stabilize and modernize the country’s financial system, Bangladesh Bank is preparing a Tk 20,000 crore fund to support a comprehensive overhaul of the banking sector. The initiative comes amid rising concerns over non-performing loans, liquidity shortages, and the need for improved governance in state-owned and private commercial banks.

According to central bank officials, the fund will be used to inject fresh capital into struggling banks, restructure balance sheets, and implement digital banking solutions. The goal is to enhance operational efficiency, restore public confidence, and ensure long-term financial stability.

“This reform package is aimed at strengthening the overall banking structure while safeguarding depositors’ interests,” a senior Bangladesh Bank spokesperson stated. “We want to ensure that banks can operate more transparently, efficiently, and in line with global best practices.”

The overhaul is expected to involve stringent monitoring measures, enhanced risk management protocols, and the introduction of stricter loan recovery mechanisms. Economists believe the Tk 20,000 crore fund could help banks meet Basel III capital requirements, improve liquidity flow, and facilitate sustainable lending practices.

The move comes at a crucial time, as the banking sector has been facing mounting challenges, including slow loan recovery rates, irregularities in credit disbursement, and a lack of technological integration. By allocating substantial resources for restructuring, Bangladesh Bank aims to not only resolve current crises but also future-proof the sector against economic shocks.

If implemented effectively, the reform program could significantly boost investor confidence, attract foreign investment, and foster stronger economic growth in Bangladesh.