Bangladesh Bank (BB) on Tuesday directed all commercial banks and financial institutions to submit classified loan data through the Credit Information Bureau (CIB) on a real-time basis.
The directive outlines the procedures for compliance and underscores the importance of timely and accurate data reporting to the central bank.
BB said all the banks and financial institutions must adhere to the guidelines outlined in the Banking Companies Act and Bangladesh Bank Order of 1972.
They have been directed to report classified loan data to the CIB from July 1, 2024, to enhance transparency and improve management of non-performing loans of the banking sector.
According to the notice signed by Munshi Mohammed Wakid, Director of CIB, the initiative aims to facilitate better credit risk assessment and foster a more robust financial system. Banks are instructed to submit bulk data in real-time to ensure that comprehensive and up-to-date information is available to the regulatory authority.
The was taken in response to growing concerns over rising non-performing loans and is expected to significantly bolster the central banks oversight capabilities.
Failure to comply will result in regulatory action against non-compliant institutions.
