Regulatory Alerts2024-02-18
Added
BRPD Circular No. 04: Policy on Loan/Investment Write off and Formation of Written off Loan Recovery Unit and its Functions
The circular mandates scheduled banks in Bangladesh to write off non-performing loans classified as bad and loss for two consecutive years or loans held by deceased individuals, provided full provisions are maintained. Banks must establish a dedicated Written Off Loan Recovery Unit under the direct supervision of the Managing Director or CEO, with specific staffing, reporting, and incentive requirements. The policy prohibits restructuring written-off loans, restricts write-offs for loans to directors, and requires monthly reporting to the Banking Regulation and Policy Department and the Credit Information Bureau.
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