Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has asked all commercial banks to provide information on good borrowers from 2015 to November 2016 by 48 hours, officials said.
The Bangladesh Bank (BB) has the information (in prescribed form) to know about the number of good borrowers, amount of rebate on interest and other relevant matters from the banks, they added.
The banks have also been advised to ensure providing such rebate to the good borrowers within this calendar year for 2015 and 2016.
The BB will take necessary action against the banks upon their unwillingness to hand out such rebate, according to the directive, issued by the central bank on Monday.
“We’ll monitor the issue closely after receiving such information to ensure the benefit of good borrowers,” the central banker said while explaining the main objective of their latest move.
Earlier on March 19 last year, the central bank had issued a policy for good borrowers for the first time aiming to establish a sound credit culture against a deep-seated default culture that has created a crisis in the banking sector.
Under the existing policy, a borrower will be considered good if his or her loan accounts — continuous, demand and term — prove to be unclassified-standard for three consecutive years.
The goodies will enjoy 10 per cent rebate on interest, paid by them, in the third year. Such incentives will remain in vogue in the subsequent years if the borrowers continue with their clean slate.
Besides, the good borrowers will be eligible for getting an enhanced credit facility to meet their requirements, according to the policy.
A borrower will not be considered good if any loan of their affiliated business entities is identified as classified in previous three years.