• Monday, Feb 24, 2020
  • Last Update : 10:34 pm

Bankers urge BB to relax loan write-off policy

  • Published at 10:30 pm November 7th, 2019
File photo of the main entrance of Bangladesh Bank in Motijheel area of the capital Mehedi Hasan/Dhaka Tribune

ABB proposed to withdraw the threshold of three years

Top bankers yesterday urged the central bank to relax the loan write-off policy to help banks reduce their non-performing loans. 

A few members of ABB (association of Bankers, Bangladesh) sought the facility in a meeting with the Bangladesh Bank Governor Fazle Kabir at Bangladesh Bank.

Bangladesh Bank advisor SK Sur Chowdhury; Deputy Governors S. M Moniruzzaman, Ahmed Jamal; ABB chairman Syed Mahbubur Rahman, Eastern Bank managing director Ali Reza Iftekhar were present in the meeting, among others. 

A meeting source said that relaxation of write-off policy was one of the important agenda in the meeting. As per the current policy, defaulted loans before three years cannot be written-off.

ABB proposed to withdraw the threshold of three years.  On February 6, banks were allowed to write off defaulted loans that were marked bad for three years, instead of earlier five years

As of June, the total amount of written off defaulted loans stood at Tk41,477.63 crore, according to Bangladesh Bank data.