Dhaka, Dec. 17 -- Non-performing loans, commonly known as NPLs, are often discussed as if they represent a moral failure of the banking system. In reality, they are a standard business outcome of lending, embedded in the structure of modern finance. Banking is not the business of certainty; it is the business of calculated risk. Banks lend against expectations of future cash flows, market stability, and borrower behaviour, none of which can ever be guaranteed. As a result, a portion of loans will inevitably fall into distress. This is neither abnormal nor undesirable. A certain level of NPLs is a natural outcome of economic activity and, paradoxically, a sign that banks are supporting growth rather than remaining overly risk-averse.

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