The Association of Bankers, Bangladesh (ABB) has proposed a bold and unprecedented set of measures to the central bank aimed at tackling the country’s mounting non-performing loans (NPLs), including publicly naming loan defaulters and imposing strict administrative restrictions on them.
In a formal letter to Bangladesh Bank Governor Ahsan H Mansur, ABB Chairman Mashrur Arefin outlined a series of recommendations intended to restore financial discipline, strengthen accountability, and accelerate loan recovery in a sector under growing stress. The proposals follow guidance provided at a meeting chaired by Deputy Governor Mohammad Kabir Ahmed on 12 November 2025.
At the core of ABB’s plan is the demand for permission to publicly publish the names and photographs of loan defaulters. The association argues that such transparency would serve as a deterrent while empowering banks and society to hold delinquent borrowers accountable. In addition, the ABB recommended a blanket ban on overseas travel for defaulters unless explicitly authorised by a court or the bank concerned.
The proposals also call for legal measures to prevent individuals with defaulted loans from participating in trade association or business body elections, effectively restricting their influence in professional and policy circles until their obligations are cleared.
Central bank data underscores the urgency of such measures. Classified loans in Bangladesh’s banking sector reached an all-time high of Tk6.44 lakh crore as of 30 September 2025, representing 35.73 per cent of total disbursed loans of Tk18.04 lakh crore. This marks a sharp increase from Tk6.08 lakh crore in June and Tk4.20 lakh crore in March, reflecting stricter loan-classification rules and the recognition of previously hidden bad loans.
Non-Performing Loans in Bangladesh Banking Sector
| Date | Classified Loans (Tk crore) | Share of Total Loans (%) |
|---|---|---|
| March 2025 | 4,20,000 | – |
| June 2025 | 6,08,000 | – |
| September 2025 | 6,44,000 | 35.73% |
ABB’s initiative has drawn strong support from senior bankers. Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank, cited precedent in the 1990s when foreign banks and parliament openly named defaulters. “It is a logical and necessary step,” he said. Rahman further criticised the continued influence of defaulters in professional and policy arenas. “How can those who have defaulted on loans participate in association elections or attend policy seminars? They should be excluded from state and social programmes. We need to address this as much as a social issue as a financial one.”
The ABB’s proposals signal a more aggressive approach to curbing financial indiscipline in Bangladesh, combining legal, social, and reputational measures to reduce systemic risk and encourage repayment among defaulting borrowers. The central bank is expected to review the recommendations in the coming months, potentially reshaping the country’s banking sector governance.
