• Thursday, Dec 09, 2021
  • Last Update : 12:42 am

Bank Company Act (Amendment): BB for strict actions against willful defaulters

  • Published at 10:38 pm February 11th, 2020
web-Bangladesh bank-bb
The Bangladesh Bank building at Motijheel Mehedi Hasan/ Dhaka Tribune

According to the draft bill, any borrower who fails to pay back his/her loans despite his/her ability will be termed as a willful defaulter

Bangladesh Bank (BB) has proposed strict actions against willful defaulters in the draft bill seeking amendment to the Bank Company act, 1991. 

The willful defaulters will be barred from traveling abroad in business class, issuance of trade licences, car and property registration, while their identities will be made public, says the draft bill. 

According to the draft bill, any borrower who fails to pay back his/her loans despite his/her ability will be termed as a willful defaulter. 

Willful defaulters will be obstructed from attending any state functions or getting state recognitions.

Willful defaulters could never become directors of banks and financial institutions. The banks can file criminal case against them, according to the draft bill. 

In the draft amendment bill, the BB proposed a single industrial group cannot control more than one bank.

The scheduled banks will make separate lists of their willful defaulters. The lists, along with pictures of the defaulters, must be displayed on their respective websites and be circulated in newspapers, adds the draft.

Experts and bankers have said that the non-performing loans of the banking sector are rising owing to the willful defaulters. If the draft amendment bill is passed in the cabinet and by the parliament, it will be a remarkable decision for the banking sector. 

The non-performing loans (NPLs) of banks rose by a staggering Tk3,863.14 crore in three months till September this year, taking the amount of stressed loan in the banking sector to Tk1,16,288.31crore despite huge facilities in place to regularize  default loans.

As of September, the total bad loans accounted for 11.99% of the total disbursed loans, according to the latest Bangladesh Bank (BB) data. 

Facebook 64
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail