Dhaka, May 29 -- Bangladesh's banking sector has witnessed a significant deterioration in capital adequacy, with the Tier-1 capital to risk-weighted assets ratio (CRAR) falling sharply to 0.48 per cent in the second half of 2024 - well below the regulatory requirement of 6 per cent.
The figures were disclosed in the Bangladesh Systemic Risk Report (BSRR), released by the central bank on Wednesday. The CRAR is a key indicator used to assess a bank's capacity to absorb financial shocks and meet its obligations, offering regulators insight into the risk of bank failures.
A senior official at Bangladesh Bank stated that many non-performing loans (NPLs), previously concealed under the former administration, are now being exposed. The rise in N...