Bangladesh Bank plans to shift part of its loan-relief workload to commercial lenders as the regulator struggles to cope with a flood of applications from distressed borrowers, according to people with direct knowledge of the matter.
Banks will be authorised to decide on support requests from clients with loans of up to Tk3 billion, the sources said, asking not to be identified. Bigger exposures will remain under the central bank’s five-member review committee.
The banking regulations and policy department (BRPD) is preparing to issue a revised circular amending its 2022 loan rescheduling and restructuring framework, one of the people said.
The regulator has been swamped with appeals: the special committee has received roughly 1,200 applications but managed to process only 500, a member of the panel said. “The pressure keeps mounting,” the person said.
Executives at commercial banks have been lobbying for more control, arguing they can move faster to provide relief to struggling businesses. The central bank is leaning toward that shift to unclog the system, another person said.
Possible revisions include slashing down-payment requirements and extending grace periods. Borrowers may still be forced to make partial repayments during the moratorium to ensure lenders retain liquidity for depositors.
