BB directs banks to report all foreign loans to Credit Information Bureau; sets fines for concealment
Starting 1 November, banks must report all foreign loan information monthly
The Bangladesh Bank has directed all scheduled banks to report all foreign loan information to the Credit Information Bureau (CIB), aiming to prevent private institutions from taking new loans locally while failing to repay existing foreign loans.
The central bank issued a circular today (29 September) stating that including foreign loans in the CIB will enhance transparency, accountability, and credit risk management in the country's banking sector.
Starting 1 November, banks must report all foreign loan information monthly. Any new loans, adjustments, or changes to existing loans must be reported in real time.
The circular warns that submitting false information or concealing data will result in fines imposed by Bangladesh Bank.
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Currently, many private sector borrowers take foreign loans, including Suppliers' Credit, from overseas lenders. Since this information is not recorded in the CIB, banks often remain unaware of borrowers' outstanding liabilities, allowing them to secure additional local loans despite defaults.
The circular specifies that all foreign loans approved by the Bangladesh Investment Development Authority (Bida) or Bangladesh Bank, as well as loans obtained through designated banks without approval, must be reported to the CIB.
Details required include the borrower's name, address, country of the lender, approval authority, and loan amounts in approved foreign currency and USD equivalent for outstanding and overdue amounts.
