Dhaka, Bangladesh (BBN)- The leaders of the Association of Bankers, Bangladesh (ABB) and the Bangladesh Association of Banks (BAB) will meet Bangladesh Bank (BB) Governor Atiur Rahman Thursday morning, officials said.
The possible impact of the BB's latest instructions relating to loan classification, provisioning and rescheduling on the banking sector may be discussed at the meeting, a senior banker said.
The BB earlier tightened its conditions about loan classification, provisioning and rescheduling to ensure stability in the banking sector.
Under the revised provisions, an on-going loan operation will be classified in the event of non-repayment of any installment within three months, instead of earlier-fixed six months.
The base for provisioning has been fixed at a minimum level of 20 percent of the outstanding balance of credits while strictly limiting the rescheduling facility of any default loan thrice.
BBN/SSR/AD-13Sept12-12:50 am (BST)
