City Bank to launch subsidiary City Credit Bureau
Earlier this month, BB approved 5 firms to launch Bangladesh’s first private credit reporting agencies
Following the Bangladesh Bank's recent approval of private-sector credit bureaus, City Bank has announced plans to establish a new subsidiary named City Credit Bureau, aimed at supporting the lender's business growth and expanding its role in the country's evolving financial services landscape.
The decision was approved by the board of directors at a meeting held on 25 September, according to a price-sensitive disclosure posted on the bank's website. However, the statement did not include details about the subsidiary's paid-up capital or its expected financial impact on the parent company.
In a landmark initiative in the country's financial sector, the central bank in early September issued Letters of Intent (LoI) to five companies, including City Credit, sponsored by City Bank, for establishing Bangladesh's first private credit reporting agencies.
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The others include UK-backed Creditinfobd, US-backed TransUnion, US-Saudi joint venture First National Credit, and bKash Credit sponsored by bKash.
These five firms were selected from 13 shortlisted applicants and will have one year to set up their infrastructure before applying for final licences. Once operational, the credit bureaus will collect and analyse data from banks, financial institutions, and other service providers to generate credit reports and scores for individuals and businesses. The aim is to expand access to finance, lower lending risks, and help reduce default rates.
Currently, Bangladesh relies solely on the Credit Information Bureau (CIB) operated by the central bank, which maintains records only of existing borrowers.
In contrast, the new private credit bureaus will build more comprehensive credit histories using advanced technologies, including artificial intelligence and machine learning, to provide deeper insights into borrowers' creditworthiness.
India already has a well-developed ecosystem of private credit bureaus, including TransUnion CIBIL, CRIF High Mark, Experian, and Equifax.
Experts believe Bangladesh's entry into this model will enhance transparency and efficiency in the lending system.
Earlier in June 2024, the government issued guidelines allowing private investors to set up credit bureau companies, requiring a minimum paid-up capital of Tk10 crore.
Meanwhile, City Bank has maintained strong financial performance.
It reported a consolidated net profit of Tk301 crore in the first half of 2025, marking 21% year-on-year growth. Investor sentiment remained upbeat, with City Bank's shares closing 0.40% higher at Tk25.30 on Thursday.
