Bangladesh Bank has directed all scheduled banks in the country to prepare and update loan-default information of all parliamentary candidates with full accuracy and speed, as the Election Commission prepares for the 13th national polls.
The instruction was conveyed at a meeting on 7 December between the central bank and a delegation of the Association of Bankers, Bangladesh, chaired by central bank Governor Ahsan H Mansur.
Officials said a formal letter outlining the compliance requirements will be issued to banks shortly.
The banking regulator stressed that all credit information on nomination-seekers must be prepared “quickly, accurately and comprehensively” so the Election Commission can verify the financial status of candidates without delay.
Banks have been reminded to follow all existing circulars on loan classification and ensure that the Credit Information Bureau (CIB) database fully reflects the correct status of each borrower, including off-balance-sheet exposures.
Central bank officials said recurring gaps in CIB reporting persist. These include outdated borrower identification details, incomplete information on persons or entities linked to a loan, and misclassification arising from unpaid non-transactional credit card charges.
Banks were instructed to correct any adverse classifications made solely due to unpaid annual fees, renewal charges or similar dues, as such liabilities do not constitute default under current rules.
Furthermore, lenders have been asked to immediately update KYC (know your customer) and e-KYC data of borrowers and all associated persons or institutions, in line with the definition of a “defaulter” under Section 5 of the Bank Company Act, 1991.
The central bank also advised banks to appoint legal counsel where necessary to expedite the disposal of CIB-related cases pending at the High Court.
In addition, banks must inform the CIB of any court matters that have expired or reached a verdict so the database can be updated without delay, according to officials at the meeting.
