BB orders banks to tighten loan-defaulter checks for election candidates
Banks have also been directed to ensure that all types of loans they have disbursed are properly recorded in the CIB database
The Bangladesh Bank has instructed commercial banks to prepare accurate, complete and updated loan default information on election candidates who have submitted nomination papers, aiming to prevent defaulters from contesting the upcoming 13th national parliamentary election.
The central bank said the directive was issued to ensure greater transparency and reliability in verifying candidates' financial records during the election period. Banks have been told to update and report data with special care to strengthen the verification process.
Managing directors of banks were recently summoned by the Credit Information Bureau (CIB) and given detailed instructions. Bangladesh Bank Governor Ahsan H Mansur repeated the same directions at a bankers' meeting on Sunday.
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Sources in the relevant department said the measures aim to strengthen the election-time database by ensuring correct default information, full identity details of individuals and institutions, data of all interested parties linked to loans, and up-to-date reports for each account.
The Bangladesh Bank stated that all loan information must be reported in the correct classification standards under policies issued from time to time by its Banking Regulation and Policy Department and Inspection Department.
Banks have also been directed to ensure that all types of loans they have disbursed are properly recorded in the CIB database. Any previously unreported loans must be entered into the CIB database without delay.
The central bank clarified that customers must not be marked as defaulters only for outstanding non-transactional charges on credit cards, such as annual fees or late fees.
If any customer has been shown as a "defaulter" in the CIB database solely due to unpaid fees or charges, despite having no overdue transaction-based dues, banks have been instructed to take necessary steps to correct the classification.
NID, tax data must be updated
Under the new instructions, banks must quickly update National Identity Card (NID) and Taxpayer Identification Number (TIN) information for borrowers and all related individuals or institutions in the CIB database.
Banks have also been told to take steps, including appointing lawyers, to speed up the disposal of High Court cases filed over defaulted loans. Information on expired cases or cases already settled by the courts must be reported to the CIB without delay.
Central bank officials said successful implementation of these steps would make election-time loan data "more accurate, modern, transparent and accountable", helping to assess the real financial status of candidates in the 13th national election.
Candidacy to be cancelled if marked defaulter
An Election Commission official said that under the Representation of the People Order (RPO), a candidate's loan must be regularised at least seven days before submitting nomination papers.
If Bangladesh Bank identifies a person as a defaulter, the candidate will be disqualified, the official said, adding that under the amended order, even after being elected, a person's membership of parliament would be cancelled if evidence emerges that they were loan defaulters or provided any false information.
In the 12th parliamentary election, 2,713 candidates filed nomination papers for 300 seats. At the request of the Election Commission, Bangladesh Bank verified their loan status through the CIB.
At least 118 candidates were identified as loan defaulters and were disqualified under the law, which bars defaulters from contesting elections.
Returning officers cross-checked candidate declarations with bank and central bank data and rejected nominations where defaulter status was confirmed.
