FB   
 
Powered bysps
        Society for Policy Studies
 
 

 
Ending the culture of bad loans
Posted:Oct 9, 2017
 
Print
Share
  
increase Font size decrease Font size
 
With a staggering Tk119,000 crores in accumulated default loans, it is about time that the government took a long hard look at the banking industry.
 
And it is time we broke this curse, which is wreaking havoc on our banking sector.
 
We have long editorialised on the decrepit status of our state-owned banks: These institutions continue to be mismanaged, flout essential rules, and issue loans with severe irregularities.
 
Bad debts are no laughing matter. With the rising number of bad debts in the sector, the entire economy is threatened.
 
As such, it behooves the government to reign in institutions which continue to ignore basic banking rules and issue loans which inevitably end up being defaulted.
 
Time and again, loans are being provided because of political association, and this practice needs to be brought to an end.
 
Unless we bring in accuracy, accountability, and good governance to the financial sector, this irresponsible and dangerous game of loan defaulting could potentially see the entire country brought down to its knees.
 
In that regard, good governance is key.
 
A recent study has already concluded that eight state-owned banks in the country have severely poor risk management, which not only results in loss-making institutions, but in an alarmingly increasing number of defaulted loans.
 
 
Each and every loan application needs to go through a rigorous process, by which default loans are minimised, and banks should be held accountable for flouting rules and regulations.
 
Finally, big defaulters must be brought to book by legal means.
 
 
 
 
 
Print
Share
  
increase Font size decrease Font size
 

Disclaimer: South Asia Monitor does not accept responsibility for the views or ideology expressed in any article, signed or unsigned, which appears on its site. What it does accept is responsibility for giving it a chance to appear and enter the public discourse.
Comments (Total Comments 0) Post Comments Post Comment
Review
 
 
 
 
spotlight image Since Prime Minister Sheikh Hasina assumed office again in Bangladesh in 2009, bilateral relations between New Delhi and Dhaka have been on a steady upward trajectory.
 
read-more
  Nearly 58 per cent of the about 600,000 Rohingya refugees in Bangladesh are children who suffer from severe malnutrition, a UN report released said.
 
read-more
A unique and passionate gathering of acrophiles, or mountain lovers, took place in neat and picturesque Aizawl, the capital of Mizoram state in north-eastern India in September.
 
read-more
India’s foreign policy under Prime Minister Narendra Modi has attained a level of maturity which allows it to assert itself in an effective manner. This is aimed at protecting the country’s national interests in a sustained way.
 
read-more
With over 100 incidents of braid chopping reported in different parts of Kashmir, there is widespread fear and anger among the people.
 
read-more
According to the National Bureau of Statistics, China's GDP expanded 6.9 percent year on year in the first three quarters of 2017, an increase of 0.2 percent above that of the corresponding period of last year.
 
read-more
As political roller coasters go, there is none as steep and unpredictable as the one shared by the United States and Iran.
 
read-more
In West Asia, the end of one war paves the way for the next. Raqqa, the Syrian capital of the self-styled Islamic State (IS), has fallen to a coalition of rebels, the Syrian Democratic Forces that is backed by the United States.
 
read-more
On “Defining Our Relationship with India for the Next Century”
 
read-more
Column-image

Title: The People Next Door -The Curious History of India-Pakistan Relations; Author: T.C.A. Raghavan; Publisher: HarperCollins ; Pages: 361; Price: Rs 699

 
Column-image

Could the North Korean nuclear issue which is giving the world an anxious time due to presence of hotheads on each side, the invasion of Iraq and its toxic fallout, and above all, the arms race in the teeming but impoverished South Asian subcon...

 
Column-image

Title: A Bonsai Tree; Author: Narendra Luther; Publisher: Niyogi Books; Pages: 227 Many books have been written on India's partition but here is a firsthand account of the horror by a migrant from what is now Pakistan, who ...

 
Column-image

As talk of war and violence -- all that Mahatma Gandhi stood against -- gains prominence across the world, a Gandhian scholar has urged that the teachings of the apostle of non-violence be taken to the classroom.

 
Column-image

Interview with Hudson Institute’s Aparna Pande, whose book From Chanakya to Modi: Evolution of India’s Foreign Policy, was released on June 17.

 
Subscribe to our newsletter
Archive