The central bank also instructed the NBFIs to increase their monitoring to see whether loans from one sector are being used in another
Bangladesh Bank yesterday asked the country’s non-bank financial institutions (NBFIs) to ensure the proper utilisation of loans.
The central bank also instructed the NBFIs to increase their monitoring to see whether loans from one sector are being used in another.
“If any serious irregularity is detected during the monitoring, the NBFIs should inform the central bank immediately,” said the central bank notice issued yesterday.
If loans from one sector are used in another, immediate action should be taken after finding out the reasons.
A loan cannot be used to repay or adjust other loans, it said.
If a loan is disbursed in instalments, the next instalment has to be disbursed after ensuring that the previous instalment was used fully and in the right sector.
The central bank notice comes at a time when a dozen of NBFI is mired in financial problems, including high amounts of defaulted loans.
Default loans at the NBFIs soared 15 per cent to Tk 10,244.7 crore in the first nine months of 2020 despite the loan moratorium facility offered by the central bank.