Desk Report,
Bangladesh Bank has asked non-bank financial institutions (NBFIs) to report information on wilful defaulters to the Credit Information Bureau (CIB). In addition, information on wilful defaulters will have to be sent to the central bank’s Financial Institutions and Markets Department every three months. This will have to be done within 10 days of the end of the third month. Bangladesh Bank issued a notification in this regard on Thursday.
Earlier, a notification had been issued to identify and finalize wilful defaulters and what action will be taken against them. The new notification says that after identifying and finalizing wilful defaulters by financial institutions, the information related to this will have to be reported to the CIB. The wilful defaulter will have to be shown as WD or Willful Defaulter in the CIB. In addition, a copy of the letter should also be sent to the CIB when the financial institution identifies a customer as a wilful defaulter. The notification further states that the financial institution must submit the aggregated information of the wilful defaulter to the Financial Institutions and Markets Department of Bangladesh Bank and the CIB on a quarterly basis in the form of a statement by the 10th of the following month. In addition, the updated statement along with all the relevant documents should be presented as per the requirements of the Bangladesh Bank inspection team.
By the end of March this year, the amount of defaulted loans in financial institutions has increased to Tk 27,189 crore, which is 35.32 percent of the total loans disbursed. By the end of December 2024, the total amount of loans disbursed by financial institutions was Tk 75,450 crore. Of this, the amount of defaulted loans was Tk 25,89 crore, which is 33.25 percent of the total loans. Meanwhile, Bangladesh Bank has taken the initiative to cancel the registration certificates or licenses of 20 non-bank financial institutions (NBFIs) that are unable to repay the customers’ money. Letters have been sent to the institutions asking why the licenses of these NBFIs will not be canceled. Earlier, the central bank identified financial institutions that have been in crisis for a long time, have high defaulted loans and are unable to repay customers. The collateral against the loans of these institutions is also very low. Therefore, it is known that Bangladesh Bank is going to take a final decision on these NBFIs.
