Bangladesh turmoil may slow financial reform, weaken banks, S&P says

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Bangladesh turmoil may slow financial reform, weaken banks, S&P says
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Prime Minister Sheikh Hasina quit and fled to India last week

DHAKA - Political turmoil in Bangladesh is likely to slow planned financial reforms and has already added to weakness in the banking sector, S&P Global Ratings said on Wednesday.

Weakness in the banking industry, including a lack of liquidity, thin capital buffers and ailing asset quality, has worsened while the departure of senior central bank officials could delay ongoing structural reforms, the rating agency said. Weeks of unrest have fanned inflation, which reached 11.66% in July - when the government imposed a nationwide curfew, shutting down transport, offices and the mainstay garments industry for days - from 9.72% the previous month, according to official data.

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