Tk 45,000cr stuck in shady loans

Eight private banks in Bangladesh engaged in risky reciprocal lending practices, with directors borrowing heavily from each other’s banks. The total loans amounted to Tk 45,000 crore, including Tk 20,000 crore to relatives of bank directors. These practices, which intensified over the past five years, raise concerns about financial stability and regulatory oversight. The banks involved are linked to powerful business groups that thrived during the previous government’s tenure, potentially exposing the financial sector to serious risks. the daily star