Regulatory Alerts2023-05-29
Added
DFIM Circular No. 05: Strengthening of Internal Control and Compliance (ICC), Pre-inspection of Loan files and establishment of Dashboard in NBFIs
Non-Banking Financial Institutions (NBFIs) operating in Bangladesh must conduct pre-inspections for any loan, lease, or investment of 10 million BDT or more to ensure regulatory compliance and proper documentation before disbursement. NBFIs are required to establish a dashboard to monitor collateral adequacy, asset classification, loan quality, and policy adherence, with regular monitoring by the Chief Executive and Head of the Internal Control and Compliance (ICC) department. Monthly reports detailing non-compliant loans must be submitted to the Department of Financial Institutions and Markets (DFIM) of Bangladesh Bank by the last working day of the first week of the following month, signed by the Head of ICC. Any serious regulatory violations discovered during pre-inspection that pose future recovery risks must be reported immediately to Bangladesh Bank, with copies sent to the Audit Committee Chairman and discussed at the next Board meeting.