Regulatory Alerts2021-09-20
Added
BRPD Circular No. 22: Policy for Non-Banking Asset (NBA)
This circular mandates that scheduled banks in Bangladesh recognize collateral acquired through legal proceedings as Non-Banking Assets (NBA) and follow specific valuation, accounting, and disposal procedures. Banks must value NBAs through a committee of three officials or professional valuers, using the lower of the two assessed values, and adjust loan balances based on whether the market value covers the total outstanding dues. The policy requires the transfer of related provisions and interest to specific accounts upon full settlement, prohibits retaining acquired properties beyond statutory limits, and mandates quarterly reporting to the Department of Off-Site Supervision.
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