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The banking regulator has ordered all banks of the country to form specialized units for identifying wilful loan defaulters by 9 April 2024.
The 'Wilful Defaulting Borrower Identification Unit' will have 30 days to determine whether someone is a wilful defaulter, the Bangladesh Bank said in a circular issued today (12 March).
The move comes as the central bank looks to rein on defaulters and boost good governance in the banking sector.
According to the central bank circular, the unit to identify wilful defaulters will be headed by officers ranking two grades below the managing director of the bank. The main task of this unit will be to identify whether any defaulting client- individual, institution, or company- is a wilful defaulter or not.
The unit will have 30 days to determine whether someone is a wilful defaulter. However, if necessary, the managing director can extend the period by another 30 days.
The list of wilful defaulters should be sent to the central bank every three months. The list will also include details such as the reason for wilful default and whether the bank has sent any notice to the defaulter to pay back the loan.
The units will begin work from 1 July 2024.
Messenger/Sumon
