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Prof Habib said the sector “stands in a storm” yet has historically been overlooked.

He said, “Banks and non-banks are doing almost the same thing in Bangladesh, as banks are covering long-term finance too. The NBFI sector should get extra incentives over banks for long-term finance.”

He also pointed to structural weaknesses. “NBFIs need to get finance through issuing long-term bonds to give long-term loans. However, they are also depending on short-term deposits to give long-term loans. It causes asset liability mismatch.”

Prof Habib believes only a stronger stock market can support bond issuers and help restore the health of the sector.

Non-banks that are yet to publish their half-year reports include Uttara Finance and Investments Limited, Prime Finance and Investment Limited, Premier Leasing and Finance Limited, LankaBangla Finance PLC, Investment Corporation of Bangladesh, International Leasing and Financial Services Limited, and GSP Finance Company (Bangladesh) Limited.