Tk 922bn embezzled through loan scams since 2008: CPD

CPD Executive Director Fahmida Khatun blames irregularities for the scams

More than Tk 922 billion was embezzled in 24 major loan scams involving 19 public and private banks, according to the Centre for Policy Dialogue, or CPD.

The private research institute reported that the defaulted loans in the banking sector were Tk 220 billion until 2008. The amount has now risen to Tk 1.56 trillion.

Speaking at a briefing at the think-tank’s office in Dhaka’s Dhanmondi on Saturday, CPD Executive Director Fahmida Khatun blamed irregularities for the scams.

She emphasised the importance of strengthening the central bank, noting that despite significant losses from bad debts, the amount recovered has been "insignificant."

“People entrust their money to banks, and it's our duty to ensure transparency in its use,” she said. “Everyone has the right to know.”

Fahmida highlighted that a particular group repeatedly misuses the banking system through irregular loans.

She stressed the need for a temporary banking commission to enhance the Bangladesh Bank.

Despite the Bangladesh Bank having established rules, she said, those behind non-performing loans are exerting influence on the bank to shape policies.