Applicability of Loan Securitization for Solving NonPerforming Loans’ Problems in Bangladeshi Commercial Bank

Authors

  • Mohammad Omar Faruk Mutual Trust Bank Limited, Dhaka, Bangladesh

Keywords:

NPL securitization, securitization, asset securitization in Bangladesh, ABS, default loan

Abstract

Non-performing loan (NPL) is one of the most influential factors for lowering the overall performance of any bank or financial institution which immediately impacts on overall activities of a bank including liquidity, stability and profitability. The securitization is, an innovative financial product, being used in many developed and developing countries as a better solution for the NPL problem. This paper lays out a proposal of how asset securitization against the NPL of a bank can be introduced in Bangladesh. This securitization can introduce a new financial market in the economy where the writing off of bad loans just stops the NPL. The paper also shows the securitization model and the problems & the prospects of implementing NPL in Bangladesh.

Downloads

Published

2016-08-20

How to Cite

Faruk, M. O. . (2016). Applicability of Loan Securitization for Solving NonPerforming Loans’ Problems in Bangladeshi Commercial Bank. EAST WEST JOURNAL OF BUSINESS AND SOCIAL STUDIES, 5, 38–55. Retrieved from https://ojs.rsi-lab.com/index.php/ewjbss/article/view/110