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BB asks banks to form large loan monitoring unit

Staff Correspondent
21 Jul 2022 00:00:00 | Update: 20 Jul 2022 22:22:35
BB asks banks to form large loan monitoring unit

The Bangladesh Bank has asked all banks to form a separate unit for monitoring large loans as part of strengthening their risk management, reducing loan concentrations, and improving the supervision of such loans.

In a circular on Wednesday, the Department of Off-Site Supervision said large loan information of a month could be sent to it on the 15th of next month instead of the 10th. The circular also said banks should keep large loan information in Form-L and its soft as well as hard copies should be sent to the Department of Off-Site Supervision every month.

The Bangladesh Bank data shows loans of Tk 12,36,647 crore were disbursed at the end of March this year.

Of this, Tk 1,75,584 crore was disbursed among large industries, which was 14 per cent of the total outstanding loan. These were mostly large loans. A review of the annual reports of various banks has shown almost half of the disbursed loans are large ones.

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