Bangladesh Bank (BB) has warned the commercial banks not to impose any condition of keeping deposits with the bank while insuring loans.

The central bank yesterday issued a circular to all banks directing them to list the companies on the basis of credit rating instead of selecting them on their own likings.

In the circular the BB said, any borrower has right to insure his loans with any insurance company.

Earlier, the central bank received a complaint that many banks have been listing insurance companies on condition that they keep deposits with the company concerned.

News: The Daily Star/ Bangladesh/ Mar-15-2011