Banks directed to update credit info to prevent defaulters contesting polls
Banks must submit monthly updates on new, ongoing loans
Highlights
- Bangladesh Bank is updating loan data ahead of the election
- Banks must update records immediately and follow strict rescheduling rules
- Loan defaulters will not be allowed to contest
- Actual loan status must be reported even with court stay orders
- Candidates must have regular loan status seven days before nomination submission
As the 13th national election approaches, Bangladesh Bank's Credit Information Bureau (CIB) has begun updating its loan-related data to ensure candidate records are accurate before nomination submissions.
To this end, the central bank held a special meeting with CIB officers from all banks and financial institutions on 29 October, instructing them to update loan information without delay.
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A CIB officer from a private bank, on condition of anonymity, said the central bank, on behalf of the government, told them that no loan defaulter will be allowed to contest the upcoming election.
The Bangladesh Bank has also directed banks to strictly follow rescheduling regulations for long-term defaulters seeking to regularise their loans ahead of the polls.
The central bank has said no exemptions or leniency will be allowed. Banks have been repeatedly warned against withholding information, and all branches have been instructed to update loan data immediately.
Even if a borrower has secured a stay order from court, banks must report the actual loan status to Bangladesh Bank, said the banker.
Central bank sources said institutions that have not yet reported default data to the CIB must do so without delay. Banks are required to submit monthly updates on new and ongoing loans, based on the closing balance at the end of each month.
They have also been instructed to update the loan records of potential election candidates, reporting details such as repayment status, loan classification, expiry date, overdue balance, number and amount of defaulted instalments, and the number and value of payments made.
To ensure uninterrupted communication during the verification process of candidates' loan records, the Bangladesh Bank has asked each bank branch to appoint a dedicated officer and provide their name and mobile number to the central bank.
According to election rules, a person whose loan is not in regular status at least seven days before filing nomination papers will be deemed ineligible to contest.
The BNP has already announced a list of 237 potential candidates, among whom at least four are reportedly loan defaulters.
In an interview with The Business Standard on 24 July, Governor Ahsan H Mansur said that even if a borrower obtains a court stay order, the account will still be classified as defaulted.
