Regulatory Alerts2024-09-10
Added · Updated
CIB Circular No. 03: Regarding reporting of loans sanctioned against a company having various units/factories in CIB Database
Bangladesh Bank mandates that loans sanctioned to multiple units or factories of a single registered company must be reported under the single company name approved by the Registrar of Joint Stock Companies and Firms (RJSC), rather than under individual unit names. If distinct units are registered as separate legal entities by the RJSC, they must be reported as separate companies in the CIB database. This directive is effective immediately and is issued under the authority of Article 44(1) of the Bangladesh Bank Order, 1972.
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Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh. Website: www.bb.org.bd
Credit Information Bureau
Date: ----------------------- 10 September 2024 26 Bhadra 1431
CIB Circular No. 03
Managing Director / Chief Executive Officer All Scheduled Banks/Finance Companies Operating in Bangladesh Head Office, Dhaka.
Dear Sir,
Regarding reporting of loans sanctioned against a company having various units/factories in CIB Database.
It has recently been observed that various banks/finance companies operating in the country are sanctioning loans in the name of various units of a single company established at multiple addresses for the same/different categories of products. In order to bring transparency in CIB reporting, you are hereby directed to follow the following matters in reporting the aforementioned loans:
a) If a company registered with the Registrar of Joint Stock Companies and Firms (RJSC) establishes units/factories at multiple addresses for the production of the same/different categories of products or services, those units/factories must be reported in the CIB database using exactly the same name by which the RJSC has approved the registration. For example, it is mentioned that 'A Limited' is a company registered with the RJSC. If this company establishes units/factories at various locations for the production of various products or services, such as 'A Limited (Unit-1)', 'A Limited (Unit-2)', 'A Limited (Unit-3)', 'A Limited (Garments Unit)', etc., these named units should be considered as companies under the 'A Limited' company and reported accordingly in the CIB database.
b) If 'X (Unit-2) Limited' and 'X Limited (Unit-2)' are registered as two different companies with the RJSC, they must be reported as two different companies in the CIB database.
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This directive will be implemented immediately.
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This directive is issued under the powers conferred by Article 44(1) of the Bangladesh Bank Order, 1972 (P.O No. 127 of 1972).
Yours faithfully,
(Signature) (Munshi Mohammad Wakil) Director (CIB) Phone: 9560133
Phone: 88-02-9550448, 9554896, IP: 88-02-55665001-6, Fax: 88-02-9530479, www.bb.org.bd