Bangladesh Bank (BB) has asked all scheduled banks operating in the country to adhere to revised loan classification codes to be effective immediately.
The central bank's Statistics Department has issued a circular on November 2, amending the monthly interest-based loan classification templates used by financial institutions.
The changes specifically impact the codes assigned to three categories of unclassified loans under the Standard category: STD-0, STD-1, and STD-2, now replaced by new codes 1008, 1009, and 1010 respectively, replacing older codes 1011, 1012, and 1013.
This directive follows the earlier circular on December 22, 2024, aims at streamlining reporting and classification consistency across banks. Notably, the classification codes for Special Mention Accounts (SMA), Substandard (SS), Doubtful (DF), and Bad/Loss (B/L) categories, as well as codes for the SBS-3 reporting template, remain unchanged.
Banks are expected to implement these updates without delay to ensure uniformity in loan data reporting to the central bank.
The Statistics Director, Md. Habibur Rahman, emphasizes the significance of compliance with this circular to maintain the integrity of loan classification data critical for monitoring banking sector health.
This move reaffirms Bangladesh Bank's commitment to enhancing transparency and accuracy in banking statistics, reinforcing regulatory oversight with authoritative precision.
Scheduled banks must immediately update their data systems and reporting mechanisms to reflect these code changes, ensuring no disruption in financial data submissions.
The BB's proactive approach highlights the ongoing efforts to refine financial oversight frameworks essential for prudential regulation and economic stability.
The clarity in loan categorization benefits not only regulatory bodies but also the broader financial ecosystem by supporting better risk assessment and informed decision-making.
It is unequivocal that adherence to this directive is compulsory for all concerned institutions, underscoring the central bank's commanding role in safeguarding the nation's financial system, the circular said.
