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Banks instructed to identify loan-defaulting candidates

  • Published at 12:33 am November 24th, 2018
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The banks must submit this information on November 28

Bangladesh Bank has instructed the country’s commercial banks to identify candidates who defaulted on their loans, so that they cannot participate in the upcoming 11th general election.  

In response to a letter from the Election Commission, the Banking Regulation and Policy Department of Bangladesh Bank sent a letter to all of Bangladesh’s commercial banks on Thursday.

The letter, sent to the banks’ chief executives, stated: “The name of the nomination papers’ applicants, the name of a parent or husband, and any other necessary information has to be collected by the respective returning officer, through the bank concerned, on November 28.”

The letter continued that the returning officer concerned should make the information about loan defaulters available in a database – available to the returning officers concerned – after verifying all the necessary information. 

In the Central Bank’s directive, according to section 12 Representation of the People Order, 1972, the loan defaulters are not eligible to be members of the Jatiya Sangsad (Bangladesh Parliament)—which makes them ineligible as candidates for the parliamentary elections.

Therefore, the information – regarding loan-defaulting nomination-aspirants who have purchased  forms for the election – must be provided by all scheduled banks.

The officials of the concerned banks have been requested to go to the returning officers’ offices to provide them with information regarding loan defaults, and other necessary financial requirements, on the submission date for nomination papers.

The letter from the central bank stated the deadline for submitting nomination papers is November 28.

Bangladesh Bank spokesperson and Executive Director Sirajul Islam said Bangladesh Bank sent letters to the commercial banks of the country, after receiving a letter from the Election Commission. 

He said that the commercial banks have been directed to compile an updated list regarding information about the loan default candidates.

On November 12, the Election Commission sent letter to Bangladesh Bank to take the necessary initiatives so that no loan defaulters run for election. 

The commission’s letter stated that if loan defaulters submit nomination papers, they should be disqualified from the running, therefore it is necessary for the banks to provide information about them.

Earlier, the central bank directed the commercial banks, orally, to compile an updated list after receiving the letters from the Election Commission. Additionally, the following information should be collected about the candidates: their status regarding loan defaulting, their citizenship, their affiliation, and where they defaulted on loans outside of the electoral area. 

On condition of anonymity, a managing director of a commercial bank said: “According to the Bangladesh Bank’s directive, we are collecting information about those whose names are mentioned in the newspaper, so that no loan defaulters are candidates in the upcoming election. We have also instructed the branch managers in this regard.”

Meanwhile, the Central Bank’s Credit Information Bureau (CIB) has created a database of borrowers for financial institutions as well as banks. They created a list, updated monthly, with information about defaulters who borrowed large sum of money; the other list is compiled on a quarterly basis.

The information about defaulters has been updated till September; the information of those who are still defaulting on loans is instantly updated.