Dhaka, Bangladesh (BBN)- Any proposal for sanctioning large loan or lease of the non-banking financial institutions (NBFIs) will require approval from its board of directors, officials said.
The central bank issued a circular in this connection on Monday and asked the chief executives and managing directors of NBFIs to abide by the instructions relating to approval of large loan or lease.
"The NBFIs will not allow sanctioning any large loan or lease without approval of their board of directors," a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
The BB has taken the measure to ensure good and corporate governance in the NBFI management through specified responsibilities and authorities of the top management, he added.
Under new provisions, loan or lease sanctioned to any individual or business entity or business group amounting to 15 per cent or more of the total capital of a NBFI will be considered as large loan.
Currently, 31 NBFIs are running their business in Bangladesh.
BBN/SSR/AD-19June12-9:54 am (BST)
