Bangladesh begins special audit, stress testing of banks, as bad loans add to crisis

With many banks having lost their capital base due to huge looting by the close aides of the last government, Bangladesh’s central bank has launched a special audit for six highly troubled banks to evaluate their asset quality before deciding their future.

EY and KPMG International have been appointed to carry out the inspection at the banks.

The six banks, which operate business under Islamic shariah law in the Muslim majority nation of 170 million people, once had very good financial health before being infiltrated and looted by unscrupulous business groups. After the loan scams these banks have no money to run day to day affairs or...