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The new government will press ahead with banking sector reforms, placing priority on taming inflation, reducing non-performing loans and stabilising recently merged banks, Bangladesh Bank Governor Ahsan H Mansur said on Monday.

He spoke to reporters after a closed-door meeting with Finance Minister Amir Khosru Mahmud Chowdhury at the Secretariat, where progress on ongoing reform measures was reviewed.

“We briefed the finance minister on the reforms under way. He emphasised continuing these measures and expressed strong support,” the governor said, describing the response as positive.

Inflation fight remains central

Mansur made clear that inflation control remains a top government priority.

“Inflation must be brought down — there is no disagreement on this,” he said.

The central bank is maintaining a tight monetary stance, focusing on liquidity management and coordinated interest rate measures to curb price pressures. At the same time, it aims to ensure credit continues flowing to productive sectors to sustain economic activity.

Crackdown on bad loans

Rising non-performing loans (NPLs) also dominated the discussion. The governor said legal action against large defaulters has been strengthened, loan restructuring policies tightened, and wilful defaulters identified more rigorously.

Transparency in loan classification is being enhanced, and regular consultations are being held with bankers. “Many believe the steps taken are beginning to produce results,” he added.

Focus on merged Islami bank

The stability of the consolidated Islami bank — formed through the merger of five Shariah-based lenders — was another key issue.

The governor said the deposit situation is gradually improving. “Depositors are receiving their funds, and new deposits are also coming in,” he noted.

The merged entity, created by combining EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank, has an authorised capital of Tk 400 billion and paid-up capital of Tk 350 billion, including Tk 200 billion from the government.

Appointment of a new managing director has been delayed after a shortlisted candidate fell ill. Until then, the administrator and board will continue overseeing reforms, with a possible extension of the board’s tenure under consideration.

Reform momentum to continue

Bangladesh’s banking sector has faced years of irregularities, including loan scams, politically influenced lending and weak oversight. After the political transition in August 2024, reform initiatives were launched, including bank mergers, board restructuring, stricter supervision and action against major defaulters.

With many measures still in progress, officials say the responsibility now lies with the new government to complete the reform agenda and restore stability and public confidence in the financial system.