Regulatory Alerts2019-04-21
Added · Updated
BRPD Circular No. 03: Loan Classification and Provisioning
This circular establishes objective criteria for loan classification, requiring Continuous and Demand Loans to be treated as past due from the day following expiry or demand, while unpaid installments of Fixed Term Loans become past due after six months. Loans remaining past due for three to less than nine months are classified as Sub-standard, nine to less than twelve months as Doubtful, and twelve months or beyond as Bad/Loss. Sub-standard loans must be reported as defaulted loans in accordance with section 5(GaGa) of the Banking Companies Act, 1991. The instructions apply to all Scheduled Banks in Bangladesh and come into force on 30 June 2019, superseding BRPD Circular No. 19 dated December 27, 2012.
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