BB asks NBFIs to ensure proper loan utilisation

FE REPORT | Monday, 1 March 2021

The Bangladesh Bank (BB) has asked the non-bank financial institutions (NBFIs) for ensuring proper utilisation of loan/lease/investment funds, sanctioned by them.
The BB's Department of Financial Institutions and Market, in a circular - issued on Sunday, urged the NBFIs to ensure proper utilisaiton of their loans, so that the clients concerned cannot divert those to other projects or use in other areas.
The central bank said the financial institutions must evaluate the previous installments (of loans) before issuing new installments (to clients).