Regulatory Alerts2021-07-26
Added
Master Circular: Loan/Lease Classification and Provisioning
Financial Institutions in Bangladesh must classify Short Term, Lease, Term, and Housing Finance on a quarterly basis using specific objective criteria based on past due durations and qualitative judgments. The circular mandates specific provisioning rates, including 0.25% for CMSME standard loans, 2% for subsidiaries and brokerage houses, and specific percentages for Special Mention, Sub-standard, Doubtful, and Bad/Loss categories. Institutions are required to submit classification statements within 30 days of each quarter-end and maintain eligible collateral valuations to determine the provision base. Revised reporting templates CL-1 through CL-7 replace previous forms to standardize these reporting obligations.
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