Regulatory Alerts2022-04-07
Added
BRPD Circular Letter No. 09: Master Circular on Loan Rescheduling: Transfer of Interest charged on Rescheduled Loans to Income Account
The document prohibits banks from transferring interest charged on rescheduled loans to their income accounts unless such interest has been actually received. This directive aims to prevent the inflation of bank income and the weakening of capital bases, ensuring that financial statements reflect the true financial position of banks. The instruction is issued under the authority of Section 45 of the Bank Company Act, 1991, and applies to all scheduled banks operating in Bangladesh.