The Bangladesh Bank has published an updated list of yellow zone banks for 2026 to clarify the banks that are being closely monitored by the central bank. This updated yellow zone bank list is an example of the proactive supervision of the central bank to protect depositors and maintain financial stability. With this updated yellow zone bank list, both customers and investors will have the information needed to make informed decisions while knowing which banks are subject to closer guidance for banks to improve their operations and governance.
What Is a Yellow Zone Bank in Bangladesh?
Bangladesh Bank classifies a yellow zone bank in Bangladesh as under watch for financial or operational concerns. These banks are not failing but show signs of stress that require closer supervision. The yellow zone helps regulators intervene early, preventing small issues from escalating while ensuring customer deposits remain secure.
Why Bangladesh Bank Places Banks in the Yellow Zone
Banks are placed in the yellow zone for reasons such as:
- High non-performing loans (NPLs)
- Capital adequacy challenges
- Liquidity pressures
- Management or compliance weaknesses
This system allows the Bangladesh Bank to maintain a healthy and stable banking sector.
Yellow Zone Bank List in Bangladesh (2026 Updated)
Based on the latest 2026 assessments, the following banks are in the yellow zone:
| Bank Name | Bank Type | Current Yellow Zone Status |
| Bangladesh Development Bank | State-Owned | Nearing red zone risk |
| Sonali Bank | State-Owned | Monitoring for NPL & liquidity |
| First Security Islami Bank | Private Islamic | Under supervision |
| Standard Bank | Private | Concerns noted, under watch |
| Al-Arafah Islami Bank | Private Islamic | Ongoing monitoring |
⚠️ Disclaimer: The list is based on the latest official and regulatory updates. Banks may move between zones depending on their performance. Always check Bangladesh Bank for real-time information.
Is It Safe to Keep Money in Yellow Zone Banks?
Depositors’ money is safe in yellow zone banks. Bangladesh Bank’s oversight ensures compliance and protection of deposits. While these banks require monitoring, their status does not automatically put customers at risk. Staying informed is recommended.
Yellow Zone vs Red Zone Banks in Bangladesh
Bangladesh Bank zoning system helps regulators intervene early and protect depositors while maintaining stability in the banking sector.
| Feature | Yellow Zone Banks | Red Zone Banks |
| Risk Status | Medium risk | High risk |
| Regulatory Oversight | Close monitoring | Direct and strict control |
| Financial Health | Signs of stress but manageable | Severe financial weakness |
| Operations | Normal operations allowed | Lending and expansion are restricted |
| Capital Position | Adequate but weakening | Critically low or eroded |
| Regulatory Measures | Performance improvement plans | Restructuring, merger, or special supervision |
| Depositor Safety | Deposits remain stable | Deposits are protected through regulatory safeguards |
FAQs – Yellow Zone Banks in Bangladesh
What does yellow zone mean for a bank?
It signals financial or operational concerns, requiring regulatory oversight, but does not indicate failure.
How often is the yellow zone bank list updated?
Bangladesh Bank reviews banks biannually; official notifications are released periodically.
Can a yellow zone bank return to normal status?
Yes. Banks can exit the yellow zone after improving capital, management, and compliance.
Where can I check official updates?
All official updates are available on the Bangladesh Bank.
Conclusion
The 2026 yellow zone bank list demonstrates Bangladesh Bank’s commitment to proactive financial supervision. While these banks are under observation, depositors’ funds remain secure. Staying updated with official notifications allows customers and investors to make confident and informed financial decisions.
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