Central bank changes loan write-off rules

Posted by BankInfo on Sun, Nov 24 2013 11:24 am

The central bank yesterday altered the rules for writing off bad loans, it said in a notice.
From now on, lenders do not have to file cases for bad loans — Tk 50,000 or less — to be written off from balance sheets against full provisioning.
In 2007, Bangladesh Bank made the filing of cases mandatory before writing off any loan, irrespective of the amount.
“We have observed that, in many cases, especially with a small amount of loans, expenditure relating to court cases exceeds the loan amount,” the central bank said.

News:The Daily Star/24-Nov-2013

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