INEFFICIENT BANK OFFICIALS AND MISMANAGEMENT LEADING TO NON-PERFORMING LOANS (NPL) IN BANK ASSETS: A BANGLADESH PERSPECTIVE.

Author Name: 1. Abdullah-Al-Mamun

Volume/Issue: 05/05

Country: Bangladesh

DOI NO.: 08.2020-25662434 DOI Link: https://doi-ds.org/doilink/11.2024-28596324/UIJIR

Affiliation:

1. AVP & Manager, The Premier Bank PLC, Bashgari Branch, Kishoreganj, Bangladesh.

ABSTRACT

The rising trend of Non-Performing Loans (NPLs) in Bangladesh's banking sector has become a significant concern, threatening financial stability and economic growth. This article explores how inefficient bank officials and mismanagement within banks are key contributors to the NPL crisis. Factors such as inadequate risk assessment, lack of accountability, poor loan monitoring, and corruption among bank officials exacerbate the problem. Additionally, mismanagement issues, including ineffective loan recovery mechanisms, weak internal controls, and political interference, have further compounded the challenge. The article discusses the impact of NPLs on the banking sector and the broader economy, highlighting the urgent need for reforms. Key solutions proposed include enhanced training for bank officials, strengthening internal controls, and implementing stricter accountability measures to mitigate the NPL crisis and restore stability in the banking sector.

Key words: Non-Performing Loans (NPLs), banking sector, inefficiency, mismanagement, risk assessment, loan monitoring, internal controls, corruption, political interference, Bangladesh, financial stability.