Strengthening the banking sector is a top priority. Recent years saw rising non-performing loans (NPLs) and failures of some banks, eroding confidence. The government has responded with new regulations – for example, a Banking Industry Ordinance to protect depositors and enforce better governance. The World Bank stresses that Bangladesh needs “bold and urgent reforms to bolster the financial sector”. These include stricter supervision, prompt resolution of bad debts, and better risk management. The Bangladesh Bank’s latest policy statement even outlines task forces to address asset quality and governance in banks. All these measures aim to clean up balance sheets and restore trust. A healthy banking system is crucial so that credit can flow to productive businesses. If implemented fully, these reforms will help ensure that the financial system supports growth rather than holding it back.