Regulatory Alerts2022-07-18
Added
BRPD Circular No. 16: Master Circular on Loan Rescheduling and Restructuring
Bangladesh Bank issues Circular No. 16 to establish minimum standards for loan rescheduling and restructuring, replacing Circulars No. 15 and No. 06. The circular permits classified loans to be rescheduled up to four times, with specific maximum tenors and mandatory minimum down payment percentages that increase with each rescheduling instance. It mandates that banks verify borrower viability, obtain credit committee approval, and report rescheduled loans to the Credit Information Bureau (CIB) with specific codes, while prohibiting rescheduling for fraudulent accounts or those previously rescheduled four or more times before this circular's issuance.
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