How Bangladesh’s Economy Was Siphoned Dry
Published On Dec 4, 2024, 12:00 AM
Bangladesh's currency has been significantly affected by financial mismanagement and corruption during Sheikh Hasina's regime, leading to substantial losses for the banking sector. The new central bank governor estimates that around $17 billion was siphoned off, while other estimates suggest losses could exceed $30 billion due to fraudulent loans and poorly regulated banking practices. As a result, many Bangladeshi banks are struggling to maintain stability, limiting credit and facing withdrawal demands from customers.
Stock Forecasts
BBD
Negative
The ongoing turmoil in Bangladesh's banking sector is likely to lead to a decline in investor confidence, negatively impacting the country's economy and financial markets. As banks face liquidity crises and customer withdrawals, foreign investments may decrease, signaling a bearish outlook on the Bangladeshi economy.