Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has asked the non-banking financial institutions (NBFIs) to submit their respective statements of large loans or lease facilities to its department concerned on quarterly basis, officials said.
A loan or a lease sanctioned to any individual or business entity or business group amounting to 15 per cent or more of the total capital of an NBFI will be considered as a large loan, according the new provisions.
“The central bank has taken the latest move with a view to minimizing the credit risk of the NBFIs through diversifying the exposure of their loan portfolios,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
All types of direct and indirect loans or lease facilities will be considered while calculating the large loans or leases. But all types of indirect loans or leases will be calculated as 50 percent of credit equivalent, according to the circular, issued by the BB recently.
The central banker also said the NBFIs will have to maintain provisions against large loans like the commercial banks to ensure discipline in the country’s financial sector.
The BB officials also said the NBFIs will have to submit the statements on large loans in specified format to the BB’s Department of Financial Institutions and Markets within 15 days after the end of the respective quarter.
Currently, 30 NBFIs are running their business in the country.
BBN/SSR/AD-11Sept11-9:04 pm (BST)
