Regulatory Alerts2024-04-03
Added
BRPD Circular No. 07: Providing loan facilities to any borrower of the group if a borrower of the same group is not willful defaulter
The circular mandates that if any borrower within a group is identified as a willful defaulter, no bank or financial institution may provide any loan facility to that specific defaulter. However, loan facilities may be extended to other entities within the same group, provided they are not willful defaulters and subject to prior approval from Bangladesh Bank. Banks must submit applications with supporting documents, including a report on the reasons for the defaulter's status and a CIB report, and the borrower must resolve the default within one year to maintain eligibility for further credit.
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