Banks asked to submit quarterly report to BB
Friday, 18 December 2009
FE Report
The commercial banks must submit report on default loan of the non-banking financial institutions' (NBFIs) directors to the central bank on quarterly basis, officials said Thursday.
"We've taken the latest move to ensure discipline in the country's financial sector," a senior official of the Bangladesh Bank (BB) told the FE, adding that the Department of Financial Institutions and Markets of the central bank would ask the NBFIs concerned for taking necessary action in this connection.
The central bank issued a circular in this connection Thursday and asked the chief executives of all 48 scheduled banks to submit such reports within the stipulated timeframe.
Under the existing provisions, the NBFIs will have to issue a notice against loan defaulter director giving 60 days for updating such loan with the banks concerned.
"The NBFIs are empowered to remove the director if he/she fails to regularise the loan portfolios during the notice period," another BB official said.
Currently, 29 NBFIs are operating their businesses across the country.
The commercial banks must submit report on default loan of the non-banking financial institutions' (NBFIs) directors to the central bank on quarterly basis, officials said Thursday.
"We've taken the latest move to ensure discipline in the country's financial sector," a senior official of the Bangladesh Bank (BB) told the FE, adding that the Department of Financial Institutions and Markets of the central bank would ask the NBFIs concerned for taking necessary action in this connection.
The central bank issued a circular in this connection Thursday and asked the chief executives of all 48 scheduled banks to submit such reports within the stipulated timeframe.
Under the existing provisions, the NBFIs will have to issue a notice against loan defaulter director giving 60 days for updating such loan with the banks concerned.
"The NBFIs are empowered to remove the director if he/she fails to regularise the loan portfolios during the notice period," another BB official said.
Currently, 29 NBFIs are operating their businesses across the country.