The Association of Bankers, Bangladesh (ABB) has urged the central bank to adopt stringent measures against loan defaulters, including publicly naming them, in a bid to restore discipline, strengthen recovery, and curb mounting financial stress in the sector.
In a detailed letter to Bangladesh Bank Governor Ahsan H. Mansur, ABB Chairman Mashrur Arefin proposed that defaulters’ names and photographs be made public. The move, he argued, would act as a powerful deterrent and improve accountability across the banking sector. The proposals also recommend administrative restrictions, such as limiting participation in trade bodies and banning overseas travel for defaulters unless specifically authorised by a court or bank.
“These measures are aimed at protecting depositors’ interests and improving the overall health of the banking sector,” Arefin wrote. “Public disclosure and stricter administrative control are necessary to tackle the systemic rise of non-performing loans (NPLs).”
The proposals were prepared following guidance from a meeting chaired by Bangladesh Bank Deputy Governor Mohammad Kabir Ahmed on 12 November 2025, reflecting growing concerns over loan quality and sectoral risk.
According to the central bank’s latest data, 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% of the total disbursed loans of Tk18.04 lakh crore. This marks a steep increase from Tk6.08 lakh crore in June and Tk4.20 lakh crore in March, driven in part by stricter loan classification rules and recognition of previously hidden bad loans.
Banking Sector Loan Classification Snapshot
| Date | Classified Loans (Tk crore) | Percentage of Total Loans |
|---|---|---|
| March 2025 | 4,20,000 | 23.27% |
| June 2025 | 6,08,000 | 33.70% |
| September 2025 | 6,44,000 | 35.73% |
ABB’s recommendations go beyond public shaming. They include legal provisions to bar defaulters from holding positions in trade associations or attending policy forums, framing loan default as both a financial and societal concern.
Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank, strongly supported the initiative. “In the 1990s, foreign banks and even Parliament publicly named defaulters. It is a logical and necessary step,” he said. Rahman questioned why those who defaulted continue to wield influence in business or policy circles. “Individuals who fail to honour financial obligations should not be allowed to participate in elections