DHAKA, June 17, 2023 (BSS) - Bangladesh Bank (BB) today clarified its  position on the banking sector's non-performing loans (NPLs), rejecting media  reports that claimed the country's distressed loan ratio ranged between 45  percent and 60 percent. In a press release , the central bank said such figures were based on  technically flawed calculations and did not reflect the actual condition of  the banking sector as presented in its annual Financial Stability Report  (FSR) 2025. According to the report, the official NPL ratio of the country's banking  sector stood at 10.10 percent as of December 31, 2025.  Bangladesh Bank said this audited and finalized figure remains the  authoritative measure of the sector's non-performing assets. The central bank noted that some media reports had calculated so-called  distressed loans by adding together classified or non-performing loans,  rescheduled loans and written-off loans.  It described this method as an inappropriate and technically incorrect  approach that led to inflated figures. Bangladesh Bank further stated that there is no internationally recognized or  standardized definition of "distressed loans" among global regulatory and  policy-making institutions.  While the term is often used to describe loans that are not generating income  or are not being serviced regularly, the aggregate calculation used in the  reports does not conform to accepted regulatory or accounting practices. Explaining its position, the central bank said rescheduled loans cannot be  considered distressed because borrowers continue to make repayments under  approved restructuring arrangements.  These loans remain active assets that generate cash flow for banks. It also noted that written-off loans are maintained off-balance sheet in line  with international practices and therefore cannot be added to active loan  portfolios when assessing the current condition of the banking sector. Bangladesh Bank warned that publication of unverified and technically  inaccurate financial data could create negative perceptions about the  country's financial stability among domestic and international stakeholders,  potentially affecting 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.