Dhaka, June 20 -- Bangladesh is set to receive over $1.5 billion in financial support from the Asian Development Bank (ADB) and the World Bank to reform its banking sector, boost climate resilience, and enhance energy and environmental infrastructure, at a time when the country continues to grapple with foreign exchange shortages.

The ADB on Wednesday approved a total of $900 million in loans for Bangladesh. Of this, $500 million has been allocated to stabilise and reform the banking sector, while $400 million will support climate-resilient and inclusive development under the second phase of the Climate-Resilient Inclusive Development Programme (CRIDP).

The $500 million policy-based loan aims to enhance governance, improve asset quality...