Pre-audit must to disburse Tk1cr loans

The Bangladesh Bank has asked the non-bank financial institutions (NBFIs) to conduct a pre-audit through internal control and compliance for disbursing loans of Tk 1 crore and above.

It issued a notice in this regard on Monday, saying that most of the NBFIs disburse loans without proper documentation and collateral, and do not ensure the proper use of disbursed loans.

The non-performing loans (NPLs) in this sector are growing day by day against the lacklustre loan recovery due to the violation of the single borrower exposure limit and the lack of proper documentation before disbursing loans, the notice reads.

The banking regulator asked to ensure internal control and compliance for disbursing loans to bring discipline to the NBFIs.

The directive will come into effect immediately.