Bankers Call for Public Exposure of Defaulters

The Association of Bankers, Bangladesh (ABB) has proposed a series of stringent measures to the central bank, including publicly naming loan defaulters, as part of an effort to restore discipline in the banking sector and accelerate the recovery of overdue loans. The recommendations were presented in a letter to Bangladesh Bank Governor Ahsan H Mansur by ABB Chairman Mashrur Arefin, following guidance provided during a meeting chaired by Deputy Governor Mohammad Kabir Ahmed on 12 November 2025.

At the centre of ABB’s proposal is a call for the central bank to authorise the publication of the names and photographs of individuals and businesses that have defaulted on loans. The proposal also includes restrictions such as barring defaulters from overseas travel without explicit permission from a court or the concerned bank, and preventing those with outstanding loans from participating in trade association or business body elections.

The measures aim to create both financial and social accountability, with ABB emphasising that loan defaults should be treated not only as an economic problem but as a societal concern as well.

According to Bangladesh Bank data, the sector’s classified loans reached a record Tk6.44 lakh crore as of 30 September 2025, representing 35.73% of total loans disbursed, which amounted to Tk18.04 lakh crore. This is a sharp increase from Tk6.08 lakh crore in June and Tk4.20 lakh crore in March, reflecting stricter loan classification rules and the recognition of previously concealed non-performing loans.

Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank, endorsed ABB’s proposals, noting that similar measures were implemented in the 1990s. “Foreign banks and even the parliament publicly named defaulters then. It is a logical and necessary step,” he said. He also questioned how defaulters continue to wield influence, arguing that they should be barred from holding positions in professional associations or participating in policy seminars. “This is as much a social issue as it is a financial one,” he added.

Key Banking Sector Data: September 2025

ABB’s proposals signal a move towards greater transparency and stricter enforcement in Bangladesh’s banking sector, aiming to reduce non-performing loans and strengthen public trust in financial institutions. The association argues that social accountability, including public disclosure, is key to achieving sustainable financial discipline and long-term sectoral stability.