Dhaka, Bangladesh (BBN)– Bangladesh Bank (BB) has asked commercial banks to set up special cells for ensuring monitoring and supervision of restructured loans, officials said.
“Bank shall set up a special cell headed by head of recovery for continuous monitoring of the restructured loan and the cell shall submit a quarterly report to the board of directors through risk management committee of the board,” the BB said in a circular, issued Thursday.
This report must contain, among others, progress in compliance with the restructuring terms and conditions, it added.
The circular also said the board of directors of the bank would review such quarterly reports and forward the same along with its specific observations to the Department of Offsite Supervision (DOS) of the BB through the chief executive officer and managing director of the bank.
“The bank will have to make full disclosure of the restructured loans in its published audited accounts in a separate note to ensure their accountability and transparency,” a BB senior official told BBN in Dhaka.
Earlier on January 27 last, the BB’s board of directors approved the policy allowing loan rescheduling only if the business entities are hit by global or domestic shocks.
BBN/SSR/AD-29Jan15-11:40 pm (BST)