Expressing concern over the growing trend of bank loan defaults, experts at a major banking conference yesterday urged the government to appoint more judges to the Money Loan Court, a special court dealing with loan defaults, to make it more effective, reports UNB. "It takes huge time to settle a default loan case in a court. Default loan cases are increasing, but they are not being settled due to a shortage of judges," observed Mirza Azizul Islam, former advisor to a caretaker government, while speaking on the closing day of the International Conference for Bankers and Academics 2016.
The Bangladesh Institute of Bank Management (BIBM) organized the 2-day conference in association with the Australian Academy of Business Social Science.
Mirza Aziz said it is now a common phenomenon that many banks issue loans for their clients to run a particular business. But the clients ‘divert’ the loan for other purposes. "Finally, these loans become default".