The Bangladesh Bank put nine banks, four state-owned banks among them, in the red zone in terms of their financial health in the June 2023 edition of "Banks Health Index (BHI) and HEAT Map."
The nine banks, the financial health of which was stated to be fragile, were Bangladesh Commerce Bank, Padm
Twelve non-bank financial institutions (NBFIs) in Bangladesh are running without a regular managing director or chief executive officer and a majority of them have had their top post vacant for more than three months in a clear breach of laws.
In a rare move, Padma Bank PLC is going to convert institutional deposits into preference shares and provide them to customers seeking to withdraw funds, exposing how deeper its liquidity crisis is.
Dividends from state-owned enterprises serve as a significant source of non-tax revenue for the government. However, many of these financial and non-financial institutions in Bangladesh are incurring losses due to inefficiency, mismanagement, irregularities, and a lack of accountability. Conversely, to support the loss-making institutions, capital assistance and subsidies need