Regulatory Alerts2025-10-19
Added
BRPD Circular No. 08: Policy on Loan/Investment Write-off and Formation of Written-off Loan Recovery Unit and its Functions
The circular amends BRPD Circular No. 04 by replacing clauses 2(1) and 4(12) to mandate that non-performing loans classified as bad and loss for at least two consecutive years be written off, prioritizing older accounts. It requires banks to notify borrowers of the write-off decision at least 30 days in advance and permits cash incentives for staff involved in recovering written-off loans, subject to board approval if no such policy exists. These directives are effective immediately under the powers granted by Section 45 of the Companies Act, 1991.
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