IDEAS home Printed from https://ideas.repec.org/a/oap/ijaefa/v6y2020i1p22-29id220.html
   My bibliography  Save this article

Non-Performing Loans in Banking Sector of Bangladesh: An Evaluation

Author

Listed:
  • Dhanonjoy Kumar
  • Md. Zakir Hossain
  • Md. Saiful Islam

Abstract

Non-performing loan is a loan that is in default or close to being in default. Non-performing loans (NPLs) badly affects the health of banking sector and also economy of the nations. The main aim of this paper is to analyze the recent trend of NPLs in banking sector with reference to Bangladesh. The present study is based on the secondary data which have been collected from the report of Bangladesh Bank and websites of the scheduled banks of Bangladesh from the year 2003 to 2018. The study revealed that NPLs are the burning problems of the banking sector in Bangladesh for last few decades. The international standard of NPL is 2 percent or below but in our country it is much higher. The NPL percentages in Bangladesh are 5 to 6 times higher than the standard which is alarming for the sector. According to the reports of Bangladesh Bank (central bank of Bangladesh) Non Performing Loans ratio stood at 10.30 % in December 2018, 9.31 percent in December 2017, 9.23 percent in December 2016 and 8.79 percent in December 2015. It is observed that the NPL ratio is growing successively with the passage of time. So, as a credit controlling authority Bangladesh Bank should give more emphasize on the NPLs of commercial banks.

Suggested Citation

  • Dhanonjoy Kumar & Md. Zakir Hossain & Md. Saiful Islam, 2020. "Non-Performing Loans in Banking Sector of Bangladesh: An Evaluation," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 6(1), pages 22-29.
    • Handle: RePEc:oap:ijaefa:v:6:y:2020:i:1:p:22-29:id:220
    as

    Download full text from publisher

    File URL: http://onlineacademicpress.com/index.php/IJAEFA/article/view/220/181
    Download Restriction: no
    File URL: http://onlineacademicpress.com/index.php/IJAEFA/article/view/220/421
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saom Shawleen Anita & Nishat Tasnova & Nousheen Nawar, 2022. "Are non-performing loans sensitive to macroeconomic determinants? an empirical evidence from banking sector of SAARC countries," Future Business Journal, Springer, vol. 8(1), pages 1-16, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oap:ijaefa:v:6:y:2020:i:1:p:22-29:id:220. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Heather Rothman (email available below). General contact details of provider: http://onlineacademicpress.com/index.php/IJAEFA/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.