Bangladesh Bank has introduced the Alternative Dispute Resolution (ADR) Mediator Enlistment Guidelines, 2026, establishing a framework to accredit external firms for handling non-judicial bank loan settlements, The Daily Star reported.

Non-performing loans reached 32.26% of total bank advances by late March 2026, totalling BDT588.7bn ($4.81bn), up from BDT557.2bn in December 2025. Loans frozen under court injunctions climbed to BDT182.4bn by end-2025, marking an eightfold surge over three years, according to Bangladesh Bank data.

The guidelines follow an earlier directive issued five months prior on arbitrator selection for pre-litigation negotiations. Bangladesh Bank said the new framework establishes uniform criteria to assess mediator competence, enforce ethical standards and improve transparency across the settlement process.

Eligible entities must hold formal incorporation as a company, partnership or registered society, with at least three years of operational history, an active trade licence and tax registration. Firms owned or managed by loan defaulters, insolvent individuals or those convicted of financial crimes are barred from participating.

Enlisted entities must maintain mediator panels of at least five members, including designated legal and accounting professionals, with each panellist holding a minimum decade of relevant sector experience.

Politically exposed individuals are excluded from serving on these panels, while entities must demonstrate adequate operational facilities and technical capacity to conduct settlement proceedings effectively.