Bangladesh is one of the developing countries and moving towards middle income group state in the world. Central bank, different commercial banks, scheduled banks and specialized banks are playing vital role in the economic development of the country. Now-a-days many banks specially eleven banks out of fifty seven failed to maintain minimum capital adequacy ratio with the central bank. Overall capital of banks rose 7.81 percent in the last quarter of 2016, but 11 banks failed to maintain the capital in line with the new international standards. Rupali Bank, Janata Bank, Agrani Bank, Rajshahi Krishi Unnayan Bank (RAKUB), Bangladesh Commerce Bank, Farmers Bank, AB bank and ICB Islami Bank are among them. Hence, the researchers have chosen the title “Impact of financial irregularities of different banks in the economy of Bangladesh”. In this connection, authors utilized secondary sources of data and selected the sample as per purpose by considering four categories of scheduled bank. It is observed from the research that the analytical result of z-score regarding the selected scheduled banks is below 1.8 in maximum cases which indicates that banks are likely heading for or under the weight of bankruptcy or these banks are not financially solvent to carry on business because of some financial irregularities. The Banking sector was tainted by a series of financial irregularities including some massive thefts, making cheat with public through hiding the written off loan and actual amount of default loan, surviving of state-owned banks with Government money (taxes), cyber crime by the hackers, consideration of political influence by concerned authority for sanctioning loan, smuggling of money out of country, lack of proper efficiency, drawbacks of management and negligence in sincerity and honesty. So the study suggests for increasing managerial efficiency especially in the nationalized banks and private weak bank, redesigning the management structure and hand over the administration from public sector to private sector within the country or to foreign management, merging the private banks which are failed to maintain capital adequacy with other solvent bank, improvement of cyber security system.

Keywords: Banking Irregularities, Bangladesh Economy, Z-score Analysis, Bankruptcy, Capital Adequacy, Financial Management.