Page 1 of 29 Page 1 of 29 An Analytical Review of Non-Performing Loan: Bangladesh and Global Perspectives Mohammad Omar Faruk Research & Development Department, Mutual Trust Bank Ltd. MTB Centre, 26 Gulshan Avenue, Plot 5, Block SE (D), Gulshan 1, Dhaka 1212 Phone: 01911806134 Email: farukprofessional@gmail.com Md Saiful Islam Research & Development Department, Mutual Trust Bank Ltd. MTB Centre, 26 Gulshan Avenue, Plot 5, Block SE (D), Gulshan 1, Dhaka 1212 Phone: 01789418204 Email: islam.saiful.1911@gmail.com Abstract: The reforming financial sector of Bangladesh is progressing towards sustainable economy. However, some crucial factors such as non-performing loan (NPL), high provision and extensive credit risk are encumbering the profit growth of commercial banks. These issues are not only alarming for Bangladeshi banker but also for the global policy makers. Different measures are reinforcing the credit policy to fend the loan loss. This paper focuses on the NPL status of Bangladesh and global perspectives, it also scrutinizes the sector-wise loan provisioning statues in banking industry of Bangladesh. In addition, the paper aims to analyze the credit risk management system to lower the uncertainty before sanctioning the loan. Further, this paper deals with the experiences of Bangladesh and other Asian countries in handling of NPLs to improve the credit policy and finds major causes and measures for NPL in both the regions. Secondary data is collected from Bangladesh Bank, World Bank, published articles and journals to conduct the objectives of this research. Finally, this study explores the positive recovery trend of NPLs as a signs of improvement, mainly due to the prudential policies taken to strengthen the loan recovery instrument and write-off measures initiated in recent years. Keywords: NPL, Non-performing Loan, Loan classification system, non-performing loans JEL Code: G21, G28