STAFF CORRESPONDENT

The Bangladesh Association of Banks (BAB) yesterday demanded decisive action from the government against owners and groups who looted money from banks, warning that the overall financial cushion against bad loans has declined to an alarming level.

The financial buffer against bad loans, termed the Capital to Risk-Weighted Assets Ratio or Capital Adequacy Ratio in the banking sector, has declined to nearly 3 percent, said the association of sponsors of private banks.

The drop in the capital adequacy ratio has created significant stress across the sector and is limiting banks’ ability to support industrial growth, SME financing, employment generation, and investment expansion, it said in a statement.

The BAB delegation, led by its Chairman Abdul Hai Sarker, placed the observations during a meeting with Finance Minister Amir Khosru Mahmud Chowdhury to discuss key fiscal, regulatory, and structural measures required ahead of the upcoming national budget for the fiscal year 2026-27.

The association highlighted the severe challenges currently facing the banking industry, including rising non-performing loans (NPLs), pressure on capital adequacy, weak private sector credit growth, and the erosion of public The It To

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