Banks seek nod to disclose loan defaulters' photos, lists

Commercial banks have sought permission from Bangladesh Bank to publish photographs and lists of loan defaulters as part of efforts to recover defaulted loans.

The Association of Bankers, Bangladesh (ABB), representing commercial banks, sent a letter to Governor Ahsan H Mansur on Wednesday outlining the proposal.

The move follows a meeting on Nov 12 between the central bank and ABB on strategies to recover non-performing loans, where bankers were asked to submit recommendations.

After around two and a half months, ABB submitted a set of proposals, with public disclosure of defaulters among the key suggestions.

Bangladesh Bank first attempted to introduce branch-level publication of defaulters' lists in 2014, but the initiative was halted following High Court directives.

The Bangladesh Association of Banks (BAB), representing bank sponsors, had backed the move at the time.
Similar attempts were made again in 2018 and 2019, but those efforts were also stalled due to political influence.

The issue of publishing defaulters' lists was discussed at several meetings of the finance ministry in 2021 as part of loan recovery measures, but the proposal was never implemented.

With defaulted loans continuing to pose challenges for the financial system, bankers have now raised the issue once again, seeking regulatory approval to proceed.    �"bdnews24.com