Dhaka, Jan. 30 -- The Centre for Policy Dialogue (CPD) has called for political commitments from the highest level required for comprehensive and sustained reforms in the banking sector.

The independent think-tank, indentified legal and regulatory frameworks have proven inadequate to address the challenges of the banking sector.

Loan defaulters have exploited loopholes in the Money Loan Court Act and taken stay orders from the court to delay repayment. The overburdened judicial system struggles to address the backlog of unresolved cases. Amendments to the Banking Company Act that favour crony capitalists have weakened governance.

The non-performing loans (NPLs) have also increased due to lenient legal actions against willful defaulters...