Amid latest developments in the banking sector, restructured unpaid large loans are coming under a close monitoring by the central bank under a bid to get accounts straight.
The Bangladesh Bank (BB) has sought latest updates on such credits from 22 banks by May 05, official sources said.
The central bank of Bangladesh has taken the latest measure to know whether various directives relating to large loan restructuring, were carried out or not by the bank concerned.
Under the move, the BB has already sent two questionnaires to the banks, seeking different pieces of information on such loans within the stipulated timeframe, according to the central bank officials.
"We'll take next steps after receiving such information from the banks," a senior BB official told the FE Monday.
Besides, the banks will have to submit their quarterly report in this connection to the central bank regularly in line with its instructions, issued on January 29, 2016.
"A bank shall set up a special cell headed by Head of Recovery for continuous monitoring of the restructured loan and the cell shall submit a quarterly report to the Board of Directors through Risk Management Committee of the Board," the BB said in its circular.
It also said such report must contain, among others, compliance progress on the restructuring terms and conditions.
"Board of Directors of the bank shall review such quarterly report and forward the same along with its specific observations to the Department of Off-site Supervision of Bangladesh Bank through the CEO/MD of the bank," the circular says.
Talking to the FE, another BB official said the central bank will get total picture of outstanding position on such loans but recovery situation won't be available due to one-year grace period.
Most of the proposals for large loan restructuring were approved between July and August last year, the central banker explained.
The central bank had earlier cleared proposals of 10 business groups for restructuring their large loans worth Tk 140.48 billion.
A total of 22 commercial banks had earlier submitted the proposals to the BB for approval for large loan restructuring on behalf of their clients.
siddique.islam@gmail.com
Restructured large loans come under BB watch
Siddique Islam | Published: April 26, 2016 00:00:00 | Updated: February 01, 2018 00:00:00
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