Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has asked the commercial banks to ensure proper utilisation of the disbursed loans through regular monitoring.
The banks have also been advised to follow the amended credit risk management guidelines in this regard, according to officials.
The Bangladesh Bank (BB), the country’s central bank, issued an instruction in this connection on Monday, asking the chief executive officers and managing directors of all the scheduled banks to comply with the instructions as mentioned in the guidelines.
Talking to BBN, a senior official of the BB said the central bank has reminded the banks of taking effective measures to ensure proper use of the loans.
“We want the loans, particularly in private sector, to contribute achieving maximum economic output through proper utilization,” the cenral banker explained.
“In disbursing the loan, it is imperative that the borrower understands and acknowledges the purpose of the loan,” the guideline reads.
“It is also imperative for the bank to design and implement checks, such as the submission of invoices, to ensure that the proceeds are spent on the designated purpose and for no other purpose, and for the borrower to understand and comply with these checks.”