Fashion
Banking woes threaten Bangladesh’s RMG export momentum
On the other hand, the very backbone of the country’s apparel export ecosystem—its banking system—has been exhibiting severe structural failures, paralysing operations, and threatening future growth prospects.
Bangladesh apparel industry is reportedly facing a liquidity crunch due to banking failures at a time when shifting orders are expected to benefit the country.
The sector’s heavy reliance on back-to-back LCs has turned risky, as local banks struggled to honour or issue new LCs.
Exporters warned delayed payments and financing risks might hit Bangladesh’s image while also eroding its competitive gains.
With Western retailers increasingly seeking alternatives to Chinese suppliers amid geopolitical and cost considerations, Bangladesh has emerged as a key beneficiary. Reports of order diversions from China and even India were already fuelling optimism across the textile-exporting community.
However, just as factories began preparing to absorb the expected surge in orders, the sector was blindsided by a systemic banking failure—one that has reportedly affected production in around 400 garment manufacturing units recently.
The crisis is rooted in the sector’s heavy reliance on Letters of Credit (LCs) for procurement and production continuity.
Typically, in export-based business models, foreign buyers open LCs through internationally recognised banks, ensuring payment to the supplier upon shipment. Bangladeshi exporters, however, operate within a more constrained framework. They commonly utilise back-to-back LCs provided by local banks to finance the procurement of raw materials. These back-to-back LCs are settled once export proceeds are realised.
The model worked efficiently—until liquidity dried up.
Reports indicate banking problems escalated sharply during the COVID-19 pandemic period. Since then, a cascading series of alleged financial missteps, rising non-performing loans (NPLs), and widespread governance issues have only deepened the cracks, as per reports.
Exporters have complained that even when export dollars are repatriated into the country, banks have been delaying or withholding the disbursement of funds. This has not only hindered the settlement of back-to-back LCs but has also jeopardised the ability of factories to pay worker wages—a particularly sensitive issue in Bangladesh, where the RMG sector directly employs over four million people and indirectly supports the livelihoods of many more.
According to data from the central bank—Bangladesh Bank—non-performing loans in the country’s banking sector reportedly jumped by Taka 74,570 crore in the January–March 2025 quarter, pushing the cumulative figure beyond Taka 4.20 lakh crore.
Several financial institutions are reportedly teetering under the weight of these bad loans, many of which are the result of alleged politically backed fraudulent lending practices and regulatory inertia.
Among the most vulnerable are five Islamic banks, facing critical liquidity shortages.
Recognising the systemic risk, the Bangladesh Bank has now proposed a merger of these five crisis-hit Islamic banks into a single entity—‘United Islami Bank.’ With the approval of the interim government, the central bank has reportedly pledged a capital infusion of Taka 20,200 crore to stabilise the merged institution.
This restructuring, though vital, may take time to translate into functional liquidity relief for the export sector, especially given the urgent cash flow needs of factories already struggling to stay operational.
In the meantime, industry representatives have been lobbying hard for immediate intervention. A BGMEA delegation, led by its president, met with the governor of the Bangladesh Bank to raise urgent concerns about the banking bottleneck. During the meeting, the BGMEA highlighted the inability of multiple banks to release repatriated export proceeds or issue new LCs—both of which are essential for maintaining production cycles and meeting international shipment deadlines.
According to reports, the BGMEA president made it clear that these delays are not just hurting domestic business continuity but are also inflicting reputational damage on Bangladesh’s credibility in the global arena.
In an industry where timeliness and trust are paramount, any perception of systemic risk—particularly around payment and financing—can result in order migration to more stable sourcing destinations.
That a sector contributing about 85 per cent of the country’s export revenues and powering nearly four million direct jobs finds itself at the mercy of banking dysfunction signals a deep policy failure, feels many.
The government, aware of the criticality of the situation, started taking steps to provide liquidity support, if reports are to be believed.
On September 4, the BGMEA issued a statement confirming that Bangladesh Bank had released Taka 886 crore in export proceeds via two distressed banks—Exim Bank and Social Islami Bank Ltd (SIBL). The disbursement has reportedly enabled nearly 250 garment factories to pay workers’ wages and allowances for August and September.
While such temporary injections could provide some breathing space, such measures are far from being a sustainable solution.
Compounding the challenge is the psychological effect the crisis is having on foreign buyers and financial markets. Order volumes and investment flows, after all, are heavily influenced by perceptions of political and financial stability.
So, even if the US imposed a somewhat favourable 20 per cent tariff on Bangladeshi goods, effective from August 7, the banking turmoil could end up eroding those competitive gains. If international buyers begin to question the reliability quotient, especially due to financial transaction risks, the consequences could be long-lasting.
The scenario unfolding at a time when many global brands are actively diversifying their sourcing bases, Bangladesh has an open runway to seize a larger share of the global apparel export pie, but for the liquidity crisis, which many fear, could become a roadblock to capitalising on the opportunities on offer.
Fibre2Fashion News Desk (DR)
Alongside it, the upgraded SWG-XR Wholegarment machine—successor to the SWG-X—will demonstrate higher productivity and expanded patterning capabilities, while the new SDS KnitPaint-Online software offers global knit programming solutions.
Since its founding in ****, Shima Seiki has led the knitting industry with over *,*** patents, pioneering whole garment technology and digital textile innovations that help brands, designers, and manufacturers create sustainable, efficient, and high-quality products.
Published
September 21, 2025
In a busy 24 hours of London Fashion Week, two couture-worthy houses, Patrick McDowell and Roksanda, held statement shows, along with two jewelry happenings, and a Berlin winter rave moment in a basement on the Strand.
Patrick McDowell
There are not that many bona fide couturiers in London, but Patrick McDowell certainly merits the etiquette, especially after witnessing his richly refined collection entitled Lancashire Rose on Saturday morning.
Inspired by his late grandmother, a lady so venerable she was born in 1923. Even before the independence of Ireland, as copies of her blue passport left on each seat read Great Britain and Ireland.
Practically every look played with roses: notably a blurred red rose print used in sleeveless jackets; skilfully sculpted bustiers; or mid-calf dresses and skirts covered with gauze. Best of all, a perfectly cut coat dress finished with crystal buttons.
McDowell clearly has a very competent atelier – in evidence with an early sleeveless black satin column embroidered with a fabric rose, whose stem reached from shoulder to ankle. Or in a cool deconstructed trench reduced to the size of a corset that bloomed with fabric flowers.
Patrick also has a smart sense of humor – finishing several black corsets and gowns with scores of dangling silver hem thimbles.
Though reverential, the collection was also technologically savvy – each look carrying a Digital Product Passport (DPP) courtesy of Certilogo. Which one can scan to discover provenance, material and sustainability. In a word, connected couture.
Staged with precision inside Control Room A of Battersea Power Station, to a soundtrack that blended his granny’s voice with lush orchestration – Erland Cooper & Scottish Ensemble. A classy couture statement, and a rather wonderful “love letter” in remembrance of a departed grandmother.
“This collection is about the life of my grandmother, a life that spanned ten decades, eight children, a world war, and me. The matriarch, the reason I began to sew, and my blueprint for fairness and straightforwardness, her presence shapes me in ways both ordinary and profound,” explained McDowell inside the passport.
Roksanda: A hipster Hepworth in The Chancery Rosewood
The other pre-eminent couturier in London is Roksanda, who presented the most accomplished collection so far this season in London Fashion Week.
Roksanda’s use of volume and silhouette has rarely been better. Seen in voluptuous trench-coats that swirled around the body, or stunning silk cocoon dresses in all manner of abstract daubs. Finishing half her looks with long tentacles of fabric of three-meter trains.
Though this season she added in a soupçon of risqué – like a cut-out, body-con black crepe top worn with billowing satin harem pants; or same cut of pant worn in pale concrete wool suit with superb wide-lapel jacket. The best suit we’ve seen on any runway after ten days of collections in New York and London.
Folding, slashing, reducing in a collection inspired by sculptor Barbara Hepworth. One does need to be tall – like Roksanda herself – to pull off these clothes, from the giant orange alligator caban to the trio of beautiful gowns made in layers of Mikado silk and the dexterously sewn sliced cock feather panels.
Staged in The Chancery Rosewood, the restored former American embassy in London, the show and collection won the designer an intense three minutes of applause. Every single clap was merited.
Completedworks: Jerry Hall performance art
A work of performance at Completedworks, starring Jerry Hall as mock TV presenter, talk show host and fortune teller.
Attired in a three-piece teal blue suit, perched on an artic blue concrete block armchair, on top of a cerulean blue carpet.
“Stop distracting me! Bread and butter, bread and butter, mema mema, mema,” Hall began, puckering her lips in preparation for her fake talk show as a producer and makeup artist fussed nearby.
“Thank you for joining us at our brand-new network, CWTV… Before we get started, I want to impart a few important messages. Beware the color green. Red is lucky for the coming months. Green is no, red is dough,” she insisted, her image magnified on a huge screen behind her.
Gradually unveiling the jewelry brand’s latest ideas. Sleek silver bracelets, hyper polished black leather bags with silver barbed wire handles, glass bowls and sapphire blue ceramic mugs.
Before, six guests who had been lent objects belonging to other members of audience, stood up with their small bags of loot.
The second of which proved to be a heavily pregnant Joséphine de La Baume. The redheaded French singer dressed in a black ruffled dress. Her bracelet – Hall explained – was an heirloom of her great grandmother. The memory of which caused the French lady to tear up. Each tear captured in detail on the screen.
At the finale, guests were offered tiny pale blue ice-creams covered in sweet pearls. Altogether turning a jewelry presentation into an arty happening.
The Ouze: Award for mise en scene
The mise en scene was the key at another cool jewelry marque The Ouze, which presented its creations inside a wicked series of tableaux as part of LFW’s NewGen selection on The Strand.
An open fridge revealed a battered chain bracelet beside a dish of butter above a gold ring around a leek, while a tough chic napkin ring and silver cutlery were left amid the aftermath of a boozy dinner party.
Close by, cool Grecian style brooches hung on a classy Prince of Wales coat inside a gent’s haberdashery. Dog tags, rugged scissors and a letter opener adorned a classical desk.
Lueder: Berlin in a basement on The Strand
Lueder is a London-based brand designed by its Berlin-raised founder Marie Lueder. And the result is a look that mangles up elements of both cities. The dark, worn and industrial aesthetic of Berlin, with the bohemian dash of London.
Lueder’s staging for her latest show mixed the two burbs’ as all. A country house banqueting table used as a runway, where the cast’s Puma sneakers left black footmarks on the white linen tablecloth. A score of “guests” at the table sipping on red wine and champagne.
Attired in ragged sweatpants and shorts; scrunched up jersey tops; ruched leather shirt/jackets and some great new beige boxing boots.
Clothes that mashed up eras as well. Medieval cowls and Tudor shorts met vertically ribbed NATO maneuver sweaters. Part of the show containing a new co-branding Lueder just completed with Pull & Bear. Full marks to the high street brand for the gutsy collab’.
And full marks to Lueder, whose show was celebrated with raucous enthusiasm. One can only imagine how much fun they will have at her after party.
Copyright © 2025 FashionNetwork.com All rights reserved.
Published
September 20, 2025
Skincare brand Bubble has announced the appointment of Leighton Meester as its first-ever global brand ambassador.
Kicking off the partnership, the American actress, who shot to fame for her break out role as Blair in the hit television series “Gossip Girl”, star’s in Bubble’s first-ever 360 brand campaign, “Radical Joy”, described as a “bold, colorful celebration of skincare that doesn’t take itself too seriously,” according to a press release.
Meester will be featured across social, digital, out-of-home, and retail channels as part of the campaign-first.
“Bubble proves that skincare can be powerful without being overly complicated,” said Meester.
“Their mission to make effective skincare accessible to everyone really resonated with me. I hope this campaign inspires people to find a little more joy in their daily routine.”
Meester, aged 39, began acting in the late 1990s with guest roles on shows like “Law & Order”, “Veronica Mars”, “7th Heaven” and “House”.
Alongside Gossip Girl, which ran from 2007 to 2012, Meester also pursued music, forging a hit with Cobra Starship’s “Good Girls Go Bad” in 2009, before releasing her debut album “Heartstrings” in 2014.
More recently, the actress has lit up the silver screen, starred in the movie “Good Cop, Bad Cop”, and is set to feature in the romantic comedy “The Bodyguard”, slated for release in December.
“With Radical Joy, we’re showing that fun and high-performance skincare don’t have to be mutually exclusive,” said Shai Eisenman, founder and CEO of Bubble.
“We’ve always believed that joyful, efficacious skincare should be for everyone, and that’s exactly what Leighton represents. She’s aspirational yet relatable, and brings this campaign to life in the most authentic way.”
Copyright © 2025 FashionNetwork.com All rights reserved.
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