Regulatory Alerts2012-12-27
Added · Updated
BRPD Circular No. 19: Loan Classification and Provisioning
The circular amends BRPD Circular No. 14 by establishing specific loan classification thresholds for Fixed Term Loans based on the Tk. 10.00 Lacs amount. Loans up to Tk. 10.00 Lacs are classified as Sub-standard, Doubtful, or Bad/Loss when past due installments equal amounts due within 6, 9, or 12 months respectively, while loans exceeding this threshold use 3, 6, or 9 month periods. Additionally, loans in Special Mention and Sub-Standard categories are generally excluded from being treated as defaulted under section 27KaKa(3) of the Banking Companies Act, 1991, except for Fixed Term Loans up to Tk. 10.00 Lacs. These amendments apply to all Scheduled Banks in Bangladesh and take immediate effect.
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