BRPD Circular Letter No. 04: Preserving audited financial statements in the loan file

Bangladesh Bank
Chief Executive Office
Motijheel, Dhaka-1000
Bangladesh.
Ref No.: BRPD-Regulatory Policy and Guidelines Department BRPD Circular Letter No.-04 06 February 2023 Date: ------------------- 23 Magh 1429 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh Dear Sir, Regarding the receipt of audited financial statements in the context of loan approval/renewal and their proper preservation in the loan file.

1. You are requested to refer to BRPD Circular Letter No.-31, dated 29 June 2021, on the subject cited above.

2. Through BRPD Circular Letter No.-31/2021, instructions were issued that for those institutions in the Cottage (C), Micro (M), and Small (S) sub-sectors of the MSME sector which are considered Public Interest Entities as defined in Section 2(8) of the Financial Reporting Act, 2015, it is mandatory to receive audited financial statements prepared by Chartered Accountants and Stakeholder Reports during loan approval/renewal and preserve them properly in the loan file from 01 January 2023.

3. Now, considering the current economic situation and aiming to accelerate the country's economic growth by increasing the flow of credit in the MSME sector, this instruction is issued that for those institutions in the Cottage (C), Micro (M), and Small (S) sub-sectors of the MSME sector which are considered Public Interest Entities as defined in Section 2(8) of the Financial Reporting Act, 2015, it is mandatory to receive audited financial statements prepared by Chartered Accountants and Stakeholder Reports during loan approval/renewal and preserve them properly in the loan file from the upcoming 01 January 2025.

4. This instruction is issued under the powers granted by Section 45 of the Bank Companies Act, 1991, and shall take immediate effect.

Yours faithfully,
(Md. Ali Akbar Farazi)
Director (BRPD)
Phone: 9530252