{"id":24268,"date":"2021-03-02T08:39:01","date_gmt":"2021-03-02T08:39:01","guid":{"rendered":"http:\/\/www.banglanewsus.com\/english\/?p=24268"},"modified":"2021-03-02T08:39:01","modified_gmt":"2021-03-02T08:39:01","slug":"ten-banks-have-a-deficit-of-tk-29000-crore","status":"publish","type":"post","link":"https:\/\/www.banglanewsus.com\/english\/2021\/03\/02\/ten-banks-have-a-deficit-of-tk-29000-crore\/","title":{"rendered":"Ten banks have a deficit of Tk 29,000 crore"},"content":{"rendered":"

News Desk:<\/strong> Although the defaulted loans in the banking sector have declined somewhat in the corona year, the capital protection situation has not improved, but has deteriorated drastically. At the end of December 2020, 10 public and private banks were facing a capital deficit. The capital deficit of these banks stands at around Tk 29,000 crore (Tk 26,952 crore).<\/p>\n

Till last September, the capital deficit of 11 banks was Tk 19,296 crore. In other words, the deficit has increased by about 10 thousand crore in the last three months. And in December 2019, the capital deficit of 12 banks was 23 thousand 612 crore.<\/p>\n

As a rule, a portion of the money and profits provided by the bank to the entrepreneurs is retained as capital. No bank can pay dividends to its shareholders with a capital deficit. News related sources.<\/p>\n

Economists believe that such a situation has arisen mainly due to non-recovery of defaulted loans. Without improving the quality of credit, the capital situation will not improve. Therefore, in order to increase the quality of the loan, first of all, emphasis should be laid on the recovery of defaulted loans. At the same time new loans need to be thoroughly verified before disbursement. It remains to be seen whether the loan is being used in the right sector.<\/p>\n

In addition, the capital situation needs to be improved by increasing income by preventing all kinds of waste. If you want to know the former governor of Bangladesh Bank. Saleh Uddin Ahmed told Jugantar that although the defaulted loans are less on paper, the actual defaulted loans are much higher.<\/p>\n

Huge sums of money are being written off and rescheduled. This means that the quality of most loans is not good. That is why you have to keep security reserves or provisions. Besides, the income of the bank is also closed now. All in all, the capital deficit is growing.<\/p>\n

According to the International Basel III policy, banks have to save capital regularly considering the risk. Under the current rules, a bank is required to keep a minimum amount of capital of 10 per cent of its total risk-based assets or Rs 400 crore whichever is higher. If a bank fails to save this amount, it is considered as a capital deficit.<\/p>\n

According to the updated report of Bangladesh Bank, 10 banks failed to meet this condition of saving capital in the December quarter of last year. Of these, 5 are state-owned, 3 are private and 2 are specialized banks. However, as most of the banks have capital surplus at this time, there is a capital surplus in the overall banking sector.<\/p>\n

According to the report of Bangladesh Bank, considering the 10 percent of the risk-based assets, the capital of the banks at the end of December is one lakh 15 thousand 904 crore. However, there is a capital of Tk 1,31,834 crore in the banking sector including emergency security savings. The overall surplus is 15 thousand 930 crore or 11.64 percent. Which was 11.94 percent last September.<\/p>\n

Meanwhile, since 2016, banks have had to keep additional capital as a capital conservation buffer. Under the implementation of Basel III, it was directed to save this additional capital at the rate of zero point 625 in December 2016, 1.25 in 2016, 1.75 in 2016 and 2.5 percent in December 2019. Thus, maintaining the minimum capital and resources, the target for the bank’s capital adequacy rate from 2018 to 2019 was to be raised to 10.625, 11.25, 11.65 and 12.50 percent respectively.<\/p>\n

According to the report of Bangladesh Bank, the capital of 45 out of 59 banks is above 12.5 percent till last December. The capital reserves of 14 banks, including 10 deficit banks, are less. Bangladesh Bank officials said that if a bank cannot maintain capital at the buffer emergency protection savings rate after maintaining a minimum capital, it will not be able to pay any cash dividends or bonuses. However, bonus shares can be issued only with the prior permission of Bangladesh Bank.<\/p>\n

In general, when defaulted loans increase, the need to save capital increases. However, last year the defaulted debt has decreased by about 5 thousand crore rupees. It is learned that due to Corona, no one paid the installment from January to this December, but he was not shown as a defaulter.<\/p>\n

As a result of this opportunity, the defaulted loan decreased by Tk 5,598 crore last year and stood at Tk 8,734 crore in December 2020, which is 7.6 percent of the total disbursed loan.<\/p>\n","protected":false},"excerpt":{"rendered":"

News Desk: Although the defaulted loans in the banking sector have declined somewhat in the corona year, the capital protection situation has not improved, but has deteriorated drastically. At the end of December 2020, 10 public and private banks were facing a capital deficit. The capital deficit of these banks stands at around Tk 29,000 crore (Tk 26,952 crore). Till last September, the capital deficit of 11 banks was Tk 19,296 crore. In other words, the deficit has increased by about 10 thousand crore in the last three months. And<\/p>\n","protected":false},"author":6,"featured_media":24269,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[12],"tags":[],"_links":{"self":[{"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/posts\/24268"}],"collection":[{"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/comments?post=24268"}],"version-history":[{"count":1,"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/posts\/24268\/revisions"}],"predecessor-version":[{"id":24270,"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/posts\/24268\/revisions\/24270"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/media\/24269"}],"wp:attachment":[{"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/media?parent=24268"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/categories?post=24268"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/tags?post=24268"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}