BB wants list of defaulters by July 1

Banks and non-banking financial institutions (NBFIs) will have to send the list of “Willful Defaulters” to the central bank’s Department of Credit Information Bureau (CIB) within July 1 2024.

The Bangladesh Bank issued a circular in this regard on Tuesday, directing all managing directors of banks and NBFIs to send the list of loan defaulters. Banks will have to submit the report on the “Database Entry” of CIB.  

In March this year, the regulator had published a circular, asking scheduled banks to establish dedicated units within their organisations, and scrutinise the identify those deliberately defaulting on loans.

According to the directive, banks will be required to submit a list of willful defaulters to the central bank every three months. The list must include the names of the defaulters, along with the reasons for their willful default of loans.

Additionally, banks must indicate whether the defaulters were served with letters. The banks’ dedicated units will have to report willful defaulters to the Credit Information Bureau (CIB) upon finalisation. Subsequently, the CIB will classify them as willful defaulters.