Bangladesh bets $3.2bn to avert a banking crisis but reforms elusive
Finance
Islami Bank and others struggling with governance issues, high nonperforming loans
Police stand outside the headquarters of Islami Bank Bangladesh in Dhaka in June amid protests against the bank’s leadership. The banking group, which has been accused of improper lending practices, has become a focal point of concern for regulators because of its systemic importance. © Getty Images
DHAKA — Bangladesh has earmarked 400 billion taka ($3.2 billion) to shore up troubled banks in its next budget, betting that emergency support can prevent a broader financial crisis even as economists warn that cash injections alone will not fix deep governance failures that have plagued the country’s banking sector for years.
