In a move to curb non-performing loans, Bangladesh Bank has toughened its stance on willful defaulters.
Banks are now required to identify and officially designate such borrowers, reporting them to the Credit Information Bureau (CIB), where they will be marked as "Willful Defaulters" (WD).
The Banking Regulation and Policy Department issued a circular on Wednesday outlining the new reporting requirements.
According to the directive, banks must submit verified information about each confirmed willful defaulter to the CIB. This data must also be provided to the borrower at the time of notification, ensuring transparency in the classification process.
In addition to real-time reporting, banks must submit quarterly summaries of willful defaulters to the Banking Regulation and Policy Department by the 10th of the month following each quarter. They are also required to furnish all relevant documents and updates when requested by Bangladesh Bank inspection teams.
Earlier, the central bank had issued a circular titled "Identification and Finalisation of Willful Loan Defaulters and Measures to be Taken Against Them," defining the criteria for identifying willful defaulters and the actions banks must take.
As part of this initiative, all banks have been instructed to begin identifying willful defaulters from this month and to establish a dedicated “Willful Loan Defaulter Identification Unit” within the same timeframe.
Bd-pratidin English/ Afia
