B Mirror Report: Bangladesh Bank (BB) has dismissed media reports claiming that the country’s banking sector’s distressed loan ratio ranges between 45 percent and 60 percent, describing the figures as technically flawed and misleading.

In a press release issued on Wednesday, the central bank said the reported figures were based on incorrect calculations and did not reflect the actual condition of the banking sector as presented in its Financial Stability Report (FSR) 2025.

According to the report, the official ratio of non-performing loans (NPLs) in the banking sector stood at 10.10 percent as of December 31, 2025, a figure that has been audited and finalized by the central bank.

Bangladesh Bank said some media outlets had arrived at much higher estimates by combining classified or non-performing loans with rescheduled and written-off loans and labeling the total as “distressed loans.” The central bank termed this methodology inappropriate and technically incorrect, saying it resulted in significantly inflated figures.

The regulator also noted that there is no internationally accepted or standardized definition of “distressed loans” among global regulatory or policy-making bodies. Although the term is sometimes used to refer to loans that are not generating income or are not being serviced regularly, the aggregate calculations used in the reports do not conform to recognized accounting or regulatory standards.

Explaining its position, Bangladesh Bank said rescheduled loans should not be considered distressed assets because borrowers continue to make repayments under approved restructuring arrangements. Such loans remain active and continue to generate cash flows for banks.

Similarly, the central bank said written-off loans are maintained off-balance sheet in line with international banking practices and therefore should not be added to active loan portfolios when assessing the current health of the banking sector.

Bangladesh Bank warned that the publication of unverified and technically inaccurate financial data could create negative perceptions regarding the country’s financial stability among both domestic and international stakeholders and potentially undermine confidence in the economy.

The central bank urged media organisations to exercise greater caution in reporting financial sector data and to verify information with official sources to ensure accuracy and maintain public and investor confidence.