BB issues directive on loan write-offs

Bangladesh Bank (BB) has issued new guidelines concerning the procedures for writing off specific loan accounts, focusing on classified debt that is unlikely to be recovered.

"Loan accounts that are classified as bad and loss and possess slim prospects for future recovery can be written off," said a BB circular issued Wednesday, reports BSS.

The circular introduced a specific prioritization mechanism for these actions. It mandated that loans classified as bad and loss that are chronologically older should be written off on a priority basis. This suggests an effort to clear older, stagnant non-performing assets from the books first.