The Bangladesh Institute of Bank Management (BIBM) presented a paper titled “Impact of some financing on Banks probability: an enquiry across banks in Bangladesh” on November 5, 2017.
According to BIBM report, default loans in the SME sector have increased by more than eight times in the last seven years. In 2016, Tk 22,494 crore out of the Tk 136,176 crore disbursed by banks became defaulted; the amount of such default loans was only Tk 2,644 crore in 2010. The default loan in the small and medium enterprise sector reached Tk 11,061 crore in 2014 and Tk 18,342 crore in 2015.
Senior bankers and experts have differed with the findings of a study on impact of SME financing on the banks' profitability which said greater financing of SMEs causes loss to the banks, according to The Financial Express.
