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Lending loans to single borrower by multiple banks rising

FE Online Report | Published: April 23, 2019 21:53:30 | Updated: April 27, 2019 10:34:45


Picture used for illustrative purpose only

The tendency of lending loans to a single borrower by multiple banks has marked a rise which is a negative indicator for the banking sector, according to a study.

The Bangladesh Institute of Bank Management (BIBM) study said the tendency rose by 4.0 per cent in 2018 compared to that in 2017. 

The report was prepared based on information of 32 banks in the country and Bangladesh Bank (BB) publications as secondary source.

It was presented at the annual review workshop titled 'Credit Operations of Banks' at BIBM Auditorium in the city on Tuesday.

The study also added that the banking sector is city-oriented which poses as a big negative impact on the sector.

BIBM chair Professor Dr Barkat-e-Khuda said people residing in the rural areas are getting limited banking facilities.

More focus to these people by the banking sector is needed, added he.

Bangladesh Bank Executive Director and BIBM Director General Md. Abdur Rahim inaugurated the workshop.

He insisted on bankers to be more vigilant in lending.

nsrafsanju@gmail.com

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