Rising defaulted loans

Rising defaulted loans have been a big concern for the banking industry and the government. Non-performing loans have increased to Tk 1.10 trillion, according to media reports.

The government has been striving very hard to deal with the defaulted loans. The finance minister recently disclosed in parliament some 300 top loan defaulters' names and amount of their defaulted loans. They are responsible for loans of around Tk 500 billion.

The finance minister has slammed the banking management for the increase of defaulted loans as the bank officials failed to select good borrowers, did not take sufficient collateral against their loans and overvalued mortgage properties etc.

Undoubtedly, there are some grounds of loan default and they deserve waiver from regulatory authority. We are aware of wilful loan defaulters who use political influence. The ever-increasing defaulted loans should be curbed. The government's commitment can play a key role in this regard.

Mohammad Zonaed Emran

Banasree, Dhaka

[email protected]