Don’t remove fraudulently obtained loans from financial statement: BB tells financial institutions
The circular for the new guidelines was issued by the Bangladesh Bank's Department of Financial Institutions and Markets on Tuesday
Even if loans taken through fraud or forgery are not repaid after the stipulated time, financial institutions will not be able to remove those from their financial statements, said the Bangladesh Bank.
The circular for the new guidelines was issued by the Bangladesh Bank's Department of Financial Institutions and Markets on Tuesday.
Earlier, it was suggested that loans, leases or investment arrears of financial institutions which have been overdue for a long time and are unlikely to be recovered anytime soon in the future, could be removed from the financial statements or accounts.
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According to the new guidelines, however, those cannot be deducted even if they remain classified for three years.
A senior official of the central bank confirmed that loans, such as the ones taken by PK Haldar, cannot be deducted from the accounts of financial institutions.
Many financial institutions exclude classified loans in order to show an improved condition.
