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Non-Performing Loan and its Impact on the Banking Sector of Bangladesh

by Murshida Khatun, Tariqul Islam, Mehidi Hasan Suvo, Jubair Bin Sharif, Md. Kwosar
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International Journal of Applied Information Systems
Foundation of Computer Science (FCS), NY, USA
Volume 12 - Number 46
Year of Publication: 2025
Authors: Murshida Khatun, Tariqul Islam, Mehidi Hasan Suvo, Jubair Bin Sharif, Md. Kwosar
10.5120/ijais2025452003

Murshida Khatun, Tariqul Islam, Mehidi Hasan Suvo, Jubair Bin Sharif, Md. Kwosar . Non-Performing Loan and its Impact on the Banking Sector of Bangladesh. International Journal of Applied Information Systems. 12, 46 ( Feb 2025), 39-43. DOI=10.5120/ijais2025452003

@article{ 10.5120/ijais2025452003,
author = { Murshida Khatun, Tariqul Islam, Mehidi Hasan Suvo, Jubair Bin Sharif, Md. Kwosar },
title = { Non-Performing Loan and its Impact on the Banking Sector of Bangladesh },
journal = { International Journal of Applied Information Systems },
issue_date = { Feb 2025 },
volume = { 12 },
number = { 46 },
month = { Feb },
year = { 2025 },
issn = { 2249-0868 },
pages = { 39-43 },
numpages = {9},
url = { https://www.ijais.org/archives/volume12/number46/non-performing-loan-and-its-impact-on-the-banking-sector-of-bangladesh/ },
doi = { 10.5120/ijais2025452003 },
publisher = {Foundation of Computer Science (FCS), NY, USA},
address = {New York, USA}
}
%0 Journal Article
%1 2025-02-04T01:14:14.741799+05:30
%A Murshida Khatun
%A Tariqul Islam
%A Mehidi Hasan Suvo
%A Jubair Bin Sharif
%A Md. Kwosar
%T Non-Performing Loan and its Impact on the Banking Sector of Bangladesh
%J International Journal of Applied Information Systems
%@ 2249-0868
%V 12
%N 46
%P 39-43
%D 2025
%I Foundation of Computer Science (FCS), NY, USA
Abstract

Non-Performing Loans or NPLs have become a major risk factor for sustainable growth and healthy profit margins for the banking industry of Bangladesh. Another cost of loans is Non-Performing Loans (NPLs) which are given when borrowers are unable to repay back the loan amount to the banks. For this purpose, this paper aims at facilitating an analysis of sectors that led to elevated non-performing loan ratios in Bangladesh based on; economic crises, bad credit risk assessment, and poor corporate governance. The effect of NPLs on the banking sector is explored in terms of decreased profits, deteriorated asset quality, as well as elevated production costs. To overcome these negative impacts, this paper recommends the following: Credit policies; more strict credit evaluation procedures, proper loan repayment methods, and sound credit-risk management. Thus, by managing the sources that contribute to the NPLs and implementing preventive measures the banking sector of Bangladesh shall have improved conditions for development and the state’s economic boost.

References
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Index Terms

Computer Science
Information Sciences

Keywords

Non-Performing Loans banking sector credit risk loan default financial stability economic growth asset quality risk management regulatory framework

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