NBFIs likely to be warned again

Last updated: October 26, 2016

Dhaka, Bangladesh (BBN) - The central bank of Bangladesh is likely to issue a fresh warning to the financial institutions against any irregularities in sanctioning loans from a review meeting Wednesday afternoon.
The meeting is scheduled to be held at the central bank headquarters with Bangladesh Bank (BB) Governor Fazle Kabir in the chair, officials said.
All chief executive officers (CEOs) and managing directors (MDs) of the non-banking financial institutions (NBFIs) have been invited to attend the meeting.
“We may advise the NBFIs’ top officials to improve their quality of assets and take necessary measures to reduce amount of classified loans through expediting recovery drives,” a BB senior official told BBN in Dhaka.
He also said different issues, including access of the NBFIs to funds belonging to the government, semi-government and autonomous bodies as well as tax on bond investment, may be discussed at the meeting.
Earlier on December 20 last, the central bank warned the NBFIs at a review meeting against any irregularities for sanctioning loans in favour of their directors.
The CEOs and MDs of NBFIs have been asked for taking effective measures to prevent such type of irregularities.
Currently, 33 NBFIs are running their business in the country.
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