Dhaka, Bangladesh (BBN) - The central bank is likely to issue a warning to the top executives of non-banking financial institutions (NBFIs) against irregularities in respect of sanctioning and rescheduling of loans for ensuring good governance in the sector.
The warning will be issued during a meeting to be held at the central bank headquarters in Dhaka on Tuesday afternoon with Bangladesh Bank (BB) Governor Dr. Atiur Rahman in the chair, officials said.
The BB may ask the NBFIs not to sanction loans in favour of their directors, defying the existing rules and regulations.
“The governor is likely to issue the warning to the NBFIs that the central bank will show zero tolerance against any irregularities,” a BB senior official told BBN in Dhaka.
He also said different issues including capital adequacy, stress testing, cost of funds and overall lease and loans situation of the NBFIs will be discussed at the meeting.
Without mentioning the names, the central banker also said the BB has already fined ‘heavily’ three NBFIs for their irregularities recently.
Currently, 31 NBFIs are running their business across the country.
BBN/SSR/AD-03Marc15-11:31 am (BST)