Regulatory Alerts2022-06-07
Added
DFIM Circular Letter No. 08: Loan/Lease/Investment Write-off Policy for Financial Institutions
The Department of Supervision and Financial Institutions Management (DFIM) of Bangladesh Bank mandates that financial institutions take appropriate legal action against loans misused for illegal purposes or created through fraud using fictitious entities. It prohibits the write-off of receivables under Circular No. 02/2019 prior to the completion of such legal measures, while confirming that all other instructions in that circular remain unchanged. These instructions are issued under Section 18(c) of the Financial Institutions Act, 1993, and take immediate effect.