Regulatory Alerts2026-07-15
Added · Updated
FCRPD Circular No. 2: Loan/Lease/Investment Write-off Policy for Finance Companies
Finance companies operating in Bangladesh must update their write-off procedures for classified loan, lease, and investment accounts to align with international best practices. Eligible accounts require full provisioning and a determination that near-future recovery is impossible, with specific thresholds allowing write-offs up to BDT 500,000 without prior litigation. The policy mandates Board approval for all write-offs, the establishment of dedicated recovery units, and strict valuation protocols for collateral, particularly for loans exceeding BDT 5 million.
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