Dhaka, March 21 -- If the International Financial Reporting Standard (IFRS) properly followed in Bangladesh, banks' net asset will be decreased by 40 per cent because of defaulted loans are being dragged on over the years, said the chairman of Financial Reporting Council (FRC), Dr. Md Hamid Ullah Bhuiyan.

As most banks in the country don't follow the International Financial Reporting Standards (IFRS) while following the central bank's directive, the actual picture of the financial health of the banks remains covert.

"We have been requesting the central bank to make it mandatory for banks to follow the IFRS. But nothing positive has been done yet. Implementing IFRS-9 will reflect the correct figure of the bank's net asset and we expect a...