Dhaka, June 19 -- The Asian Development Bank (ADB) on Thursday approved a $500 million policy-based loan to stabilise and reform the banking sector in Bangladesh by strengthening regulatory supervision, corporate governance, asset quality, and stability.

The Stabilizing and Reforming the Banking Sector Program, Subprogram 1 will focus on policy reforms to promote finance sector resilience by enhancing banking sector governance, increasing the effectiveness of Bangladesh Bank's liquidity management framework, and introducing immediate measures to resolve significant nonperforming loans in the banking system, according to a press release.

The measures under the programme will support phased compliance with international banking norms, lea...