Banking sector recovery requires Tk60,000cr annually for 5-8 years: Governor
Mostaqur said the money could have supported 2 crore families or funded the construction of two Padma bridges.
Bangladesh will need to allocate Tk60,000 crore annually from the national budget over the next five to eight years to address losses in the banking sector, Bangladesh Bank Governor Md Mostaqur Rahman said today (10 October).
"When I took over as governor, one-third of the money had already been stolen," he said, referring to total loans in the banking sector, at a Bangla QR promotional event organised by ONE Bank at United International University (UIU).
He said the looting of bank funds had left many depositors struggling to withdraw their savings.
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Mostaqur said the money could have supported 2 crore families or funded the construction of two Padma bridges.
"Plunderers took the people's money. It is not enough to call it theft; they plundered it. Legal action is also being taken against them," he added.
The governor said the money would ultimately come from taxpayers, adding that using public funds to cover losses caused by those who looted banks was hampering national development.
According to Bangladesh Bank data, defaulted loans in the banking sector stood at Tk6,06,555 crore at the end of June 2026, accounting for 32.78% of total outstanding loans.
Several banks are also facing capital shortfalls and liquidity shortages following loan irregularities during the former Sheikh Hasina government's tenure. Some have struggled to repay depositors.
Five Shariah-based banks have already been merged to form Sammilito Islami Bank, with the government providing Tk20,000 crore in capital from the national budget.
Bangladesh Bank has also provided around Tk85,000 crore in liquidity support to 12 banks.
"Plunderers took the people's money. It is not enough to call it theft; they plundered it. Legal action is also being taken against them."
"To address this huge shortfall and protect people's deposits, we have submitted a draft proposal to the government seeking Tk60,000 crore annually from the national budget for the next five to eight years," he said.
Responding to a student's question about difficulties withdrawing money from ATMs and bank branches, Mostaqur said concerns had been raised over withdrawals from Sammilito Islami Bank.
He said Bangladesh Bank had provided full support to the merged bank, enabling it to meet customers' withdrawal requests.
National Bank would also be able to meet customers' withdrawal requests from 15 October, he added.
Bangla QR to help raise tax-GDP ratio
The governor said the government had raised its revenue collection target for FY2026-27 by around Tk2 lakh crore from the previous target, adding that nationwide implementation of Bangla QR could help achieve it.
"Wider use of cashless transactions would improve transparency in business and significantly reduce VAT and tax evasion," he said.
Bangladesh's tax-to-GDP ratio is below 7%, but could exceed 10% once Bangla QR is fully implemented, he added.
Mostaqur attributed the low ratio partly to businesses failing to record all transactions, saying QR payments would bring these transactions into the formal accounting system.
The governor said Bangladesh Bank spends around Tk20,000 crore annually on printing banknotes and transporting cash to different banks.
"Wider use of cashless payments and Bangla QR could initially cut these costs by at least 50%, resulting in substantial national savings," he added.
ONE Bank, in partnership with UIU, launched Bangla QR payment facilities on the university campus at the event, attended by more than 400 students, UIU Vice-Chancellor Md Abul Kashem Mia, ONE Bank Managing Director Muhit Rahman and senior officials.
