Bankers, businesses and economists have called for wider consultation before introducing a proposed special exit facility for classified loans, saying any framework should balance non-performing loan (NPL) recovery with business sustainability and credit discipline.
They made the call at a roundtable organised by business platform International Business Forum of Bangladesh (IBFB) in Dhaka on Saturday on “Special Exit Facility for Classified Loans: Balancing NPL Recovery, Business Sustainability, and Credit Discipline”.
Bangladesh Institute of Bank Management (BIBM) Professor Shah Md Ahsan Habib, who presented the keynote paper, said the proposed exit facility needed to strike a balance between recovering bad loans, supporting viable businesses and maintaining credit discipline.
IBFB President Lutfunnisa Saudia Khan said constructive dialogue among policymakers, banks, businesses and other stakeholders was important before implementing major regulatory measures.
Participants said wider consultation could help identify practical challenges and improve implementation of the proposed facility.
Bank Asia Adviser Ali Reza Iftekhar stressed the need for stakeholder engagement before issuing a major regulatory circular.
During the discussion, speakers highlighted the need for stronger governance, fair practices and effective enforcement in loan recovery.
Dhaka University Professor M Abu Eusuf raised the issue of enforcement against borrowers who fail to repay loans, while Independent University Bangladesh Professor Md Mamun Habib emphasised the importance of good governance and fair practices.
Former BIBM Director General Toufic Ahmad Choudhury said political commitment was necessary for recovering classified loans. He also called for distinguishing between wilful and non-wilful defaulters through case-by-case assessments.
Agrani Bank Chairman Syed Abu Naser Bukhtear Ahmed and Southeast Bank Executive Vice President Md Khairul Anam Mohiuddin stressed the need for coordination among Bangladesh Bank, the Ministry of Finance and other stakeholders to improve loan recovery.
The roundtable was attended by representatives from banks, financial institutions and businesses, including BIBM Director General Md Ezazul Islam, IDLC Chairman Kazi Mahmood Sattar, Islami Bank Bangladesh Additional Managing Director Mohammad Jamal Uddin Mazumder, City Bank Chief Risk Officer Mohammad Firoz Alam and IPDC Finance Managing Director (MD) Rizwan Dawood Shams.
Business representatives, including Energypac Power Generation MD Humayun Rashid, Bangladesh Knitwear Manufacturers and Exporters Association President Mohammad Hatem, BSRM Head Saumitra Kumar Mutsuddi and Bangladesh Petrochemical Company MD and CEO Khadem Mahmud Yusuf, also attended the event.
The discussion concluded with a call for continued engagement among Bangladesh Bank, financial institutions and businesses to develop a practical approach to addressing the country’s classified loan challenges.
