Regulatory Alerts2022-08-03
Added
BRPD Circular Letter No. 33: Regarding Loan Rescheduling and Restructuring
The Bangladesh Bank amends BRPD Circular No. 16 by replacing specific clauses to clarify loan rescheduling and restructuring guidelines for all scheduled banks in Bangladesh. The updates mandate that banks verify cash flow projections and audited financial reports before rescheduling, limit standard rescheduling to three times with a fourth option only for force majeure, and require Board of Directors approval for third and fourth reschedulings on non-agricultural loans. Additionally, the circular abolishes previous exemptions for capital instrument letters and nullifies specific prior clauses, enforcing strict provisioning and classification rules for rescheduled accounts effective immediately.
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