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Some banks hit by capital squeeze BB data shows a key indicator of financial health stands at 3.08%, while most banks remain strong

MD MEHEDI HASAN

Bangladesh’s banking sector is struggling with a weakened capital base following years of unchecked irregularities during the Awami League’s tenure, with a key measure of financial strength falling to a new low.

Fresh data from Bangladesh Bank shows, capital-to-risk-weighted assets ratio (CRAR) across the sector dropped to just 3.08 percent at the end of 2024, below the 10 percent minimum required under the Basel III framework, an international set of reforms. The figure marks a steep decline from 6.86 percent three months earlier and 10.64 percent in June 2023.

While some banks continue to maintain healthy capital buffers, the data reveal a deep divide within the industry. State-owned, Islamic Shariah-based, and specialised banks have seen

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