The central bank has planned to prepare a comprehensive databank of mortgaged land properties aiming to prevent its reuse in taking out loans from banks and financial institutions, officials said.
"Bangladesh Bank (BB) is working on a database of land properties mortgaged with the country's existing banks and financial institutions against their loans. The move is now in initial stage," a high official of the central bank told the FE on Monday.
Some information especially on quantity and value of mortgaged properties have been included in the central bank's credit information table, Abu Farah Md Nasser, general manager of products and services analysis unit of BB, told the FE on Sunday.
There is no option for reservation of 'dag', 'khatian' numbers and quantity of properties/lands. As a result, borrowers again can show same mortgaged properties while taking out loans from different banks, he added.
"We are planning to prepare a databank of mortgaged land properties to check their use again in taking out loans from scheduled banks and financial institutions as per the BB's existing law," he said.
There is no specific data on mortgaged land properties in the country's banks and financial institutions, a BB official said.
Allegations and objections are often raised due to lack of a central databank. The BB found that same mortgaged properties have been used in getting loans from different banks and non-bank financial institutions, a source concerned said.
"It will be possible to reduce the number of borrowers taking out loans from different banks by using same document and mortgage if a central databank of mortgaged land properties is finally set up," he mentioned.
As per section (4) of the BB order 1972, the credit information bureau (CIB) collects credit information from banks and financial institutions. The quantity and value of mortgaged properties have to be mentioned in the table of CIB, but it is not mandatory for banks and non-bank financial institutions, he also said.
According to section (C) of the order, credit information means all sanctioned credit facilities and reserved mortgaged information.
A central banker said there is facility to include detailed mortgaged data through necessary revision of the existing CIB platform.
In August last, the finance ministry asked the central bank how to stop reuse of mortgaged properties/lands in taking out loans from the country's scheduled banks and non-bank financial institutions.
The BB informed the ministry that a databank is likely to be set up in line with the BB's law, he said.   Â
A private banker said non-performing loans (NPLs) have been increased in the banking sector due to use of fake or same document frequently in taking out loans from different banks and financial institutions.
Banks and financial institutions have now access to credit reports from CIB online at their own sites instead of the time-consuming process of applying for and obtaining reports printed on paper that was launched in July, 2011.
Chairman of Association of Bankers, Bangladesh Anis A. Khan could not be reached for his comments in this regard as his phone was found switched off.
Mohammad Abdul Mannan, managing director of Islami Bank, said there are all necessary laws in the country to check fraudulent activities in taking out loans by showing same documents in different banks.
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BB moves to prepare database of mortgaged land properties
Rezaul Karim | Published: October 11, 2016 00:00:00 | Updated: February 01, 2018 00:00:00
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