Bangladesh Bank estimates show defaults in commercial banks stood at Tk6 lakh crore by June, with an additional Tk3.18 lakh crore in hidden defaults awaiting disclosure. In a drastic step, Bangladesh Bank has decided to merge five troubled Islamic banks—First Security, Social Islami, Global Islami, Union, and Exim—into a new state-owned entity, tentatively called United Islami Bank, with a government capital injection of Tk20,000 crore. NBFIs are near collapse, with defaults at Tk21,462 crore across 20 firms—83% of their portfolios. The stock market has contracted 38% over 16 years, with nearly 100 listed companies now trading below face value. Experts warn that unless political interference is curbed and judicial enforcement strengthened, the financial sector risks a systemic collapse.