Challenges for our banking sector

The sentiment that the banking sector is the heart of a healthy economy is more applicableto a developing country like Bangladesh than any other.
There has been much talk about the banking sector as of late, mostly due to its
1) mounting non-performing loan (NPL)
2) lack of good governance
3) influence of the government over Bangladesh Bank
4) money laundering
5) malpractices by some bankers.
These factors are affecting our efficiency and productivity, as well as constraining businesses.
According to data from Bangladesh Bank, the number of bad loans increased to 11.23% at the end of the third quarter of last year. NPLs now account for 11.45% of the total loans, up from 10.41% in June of last year.
Good governance is another key issue that our banking sector lacks. The quality of governance can affect the financial soundness indicators such as asset quality, capital adequacy ratio, liquidity, earning capacity, and more.
Currently, there are fewer than 10,000 bank branches in the country. The number of bank branches needs to be increased to bring people into the financial system.
Agent banking –an alternative delivery channel  is concentrated in only three banks, with DBBL, Bank Asia, and Al Arafah holding the major share of the market. Realizing the importance, many banks have begun the practice of agent banking but have yet to initiate the service.
Minimizing the risks of IT is another major challenge for the banking sector.According to research on cyber security by the Bangladesh Institute of Bank Management (BIBM), 52% of the banks are at a high risk of cyber attacks. It is imperative that we develop a system for stopping any cyber attacks.
Banks should focus on bringing these people under the umbrella of their services. In addition, the sector should develop asset quality management and show better financial performance by ensuring good governance and other things.