EX-ANTE AND EX-POST METHODS OF NON-PERFORMING LOAN MANAGEMENT:A BANGLADESH PERSPECTIVE

Well-functioning of the banking sector and subsequent economic development of Bangladesh has been significantly constrained by the continuing crisis of the accumulation of Non-Performing Loans (NPLs).The magnitude of accumulation of NPLs largely depends on the strategiesadopted by the Government, regulatory authorities and banks for management of the NPLs. Aprudentstrategic framework offers someeffective management tools and methods for management of NPLs.The aim of this paper is to identify the ex-post and ex-ante methods of NPL management practiced in Bangladesh by reviewing the existing literature, central bank circulars, guidelines etc.. This paper will also recommend some other NPL management methods for banking industry of Bangladesh which are practicing in other countries.