Factors that cause non – performing loans in commercial banks in Tanzania and strategies to resolve them
Introduction to the Report
This report shows the present condition of non-performing loan in Bangladesh. The non-performing loan increases the risk for the banks as well as lowers the profitability of the banks. The non-performing loan was a major concern for the banks for the last few years, and the lowering the non-performing loan ratio was a challenging mater for the banks.
In this report we have tried to find out some of the major reasons that are responsible for incurring the non-performing loan in Bangladesh. Major reasons are discussed in this report and some of the major causes are given with specific bank’s type. The effect of non-performing loan is a major concern now a days so we have shown some of the effect of non-performing loan in the banks. The non-performing loans reduce the banks ability to refinance the money, it will hamper to operate the banks smoothly, and it will also reduce the profitability of the banks. The non-performing loan sometimes may create the liquidation of banks to pay the obligation of the depositors and others.
In our analysis we have seen that the non-performing loan was very high in SCBs and SBs, even the PCBs and FCBs are suffering form some amount of NPL. Though the amount of NPL is reducing for the last few years but it was a very much important mater to take the decision to lower the amount if amount of NPL all banks specially SCBs and SBs.
The Bangladesh Banks has made some of the important rules and regulations and the banks are being stricter to reduce the non-performing loan, because this loan is not generating the profits and it is going to be a loss for the bank. Some of the policies is given that should be taken by the banks to improve the situations in this report and the some of the suggestions are given in the conclusion to be implanted to improve the situation of NPL in Bangladesh.
Objectives of the Report
The objectives of the report are very important because the
This report shows the present condition of non-performing loan in Bangladesh. The non-performing loan increases the risk for the banks as well as lowers the profitability of the banks. The non-performing loan was a major concern for the banks for the last few years, and the lowering the non-performing loan ratio was a challenging mater for the banks.
In this report we have tried to find out some of the major reasons that are responsible for incurring the non-performing loan in Bangladesh. Major reasons are discussed in this report and some of the major causes are given with specific bank’s type. The effect of non-performing loan is a major concern now a days so we have shown some of the effect of non-performing loan in the banks. The non-performing loans reduce the banks ability to refinance the money, it will hamper to operate the banks smoothly, and it will also reduce the profitability of the banks. The non-performing loan sometimes may create the liquidation of banks to pay the obligation of the depositors and others.
In our analysis we have seen that the non-performing loan was very high in SCBs and SBs, even the PCBs and FCBs are suffering form some amount of NPL. Though the amount of NPL is reducing for the last few years but it was a very much important mater to take the decision to lower the amount if amount of NPL all banks specially SCBs and SBs.
The Bangladesh Banks has made some of the important rules and regulations and the banks are being stricter to reduce the non-performing loan, because this loan is not generating the profits and it is going to be a loss for the bank. Some of the policies is given that should be taken by the banks to improve the situations in this report and the some of the suggestions are given in the conclusion to be implanted to improve the situation of NPL in Bangladesh.
Objectives of the Report
The objectives of the report are very important because the