International Journal of Strategic Management & Marketing
Corporate Governance and Non-Performing Loans: A Study on Commercial Banks in Bangladesh
*Nurul Mohammad Zayed Department Of Real Estate, Daffodil International University, Dhaka, Bangladesh, Bangladesh
*Corresponding Author: Nurul Mohammad Zayed
Department Of Real Estate, Daffodil International University, Dhaka, Bangladesh, Bangladesh Email:firstname.lastname@example.org
Published on: 2019-07-30
This study attempts to identify the challenges to reducing Non-performing loans (NPLs) by means of implementing proper corporate governance practices in an effective manner in Bangladeshi banking sector. Corporate governance ensures practice of ethical standard in workplace, ensures discipline, sincerity and dedication of employees and thusensures the productivity of the organization.
In Bangladesh, Banking sector has already passed more than 50 years in operation. The sector started with the limited number of banks in 1972 now comprises more than 60 banks. It is highly competitive and sensitive industry with liability mostly taken from depositors and other investors’. Thus regulatory bodies need to be responsible and responsive to ensure and protect the interest of the depositors and investors by means of effective operation of the banking sector. Fall of few banks in early 90s and in the early 2000’s, central bank made cautious move in banking sector operation and enacted few rules, regulations, and policies to enhance control mechanism and supervision authority.