The World Bank has approved a $450 million financing package designed to strengthen the foundations of Bangladesh’s banking sector.
The initiative focuses on bolstering the country’s deposit protection fund and advancing key structural reforms, which officials view as essential prerequisites for reviving broader economic growth.
The funding is directed at stabilizing the financial system, which has faced pressure from non-performing loans and governance challenges in recent years.
By increasing the capital of the deposit protection fund, the program aims to restore confidence among retail depositors and institutional investors alike.
This move aligns with a broader international effort to support financial stability in emerging markets amid global economic uncertainty.
The approval follows a pattern of multilateral development banks targeting financial sector resilience in South Asia.