Regulatory Alerts2024-05-12
Added
BRPD Circular No. 11: Observance of Alternative Dispute Resolution (ADR) to accelerate recovery of defaulted loans
Bangladesh Bank mandates all scheduled banks to implement Alternative Dispute Resolution (ADR) and mediation to accelerate the recovery of defaulted loans, setting a minimum cash recovery target of 1% of the defaulted loan position by June 30, 2026. Banks are required to include mediation proposals in default notices, appoint qualified mediators, and establish internal incentive systems to encourage staff participation. Additionally, banks must submit quarterly data on ADR outcomes and pre-litigation mediation efforts to the Director of the Banking Regulation and Policy Division.
Topics
Share