REJAUL KARIM BYRON

The World Bank has warned that Bangladesh’s distressed banking sector remains the biggest obstacle to the government’s ambition of becoming a trillion-dollar economy by 2034.

To address the challenge, the global lender has approved a $450 million programme to support sweeping reforms aimed at restoring stability and confidence in the financial system and enabling the sector to better support economic growth and job creation.

Cleared by the World Bank board on Tuesday, the Financial Sector Support Project II is expected to back major legislative and institutional changes.

“Bangladesh’s vision of attaining a trillion-dollar economy requires a stable and inclusive financial sector. But the banking sector -- which accounts for about 90 percent of total financial sector assets -- faces mounting stress,” said Jean Pesme, World Bank division director for Bangladesh and Bhutan, according to a press release issued yesterday.

SEE PAGE 2 COL 1