Bangladesh Bank has warned non-bank financial institutions (NBFIs) that it would show zero tolerance to any financial irregularity.
Governor Atiur Rahman issued the warning at a meeting with managing directors of NBFIs at the central bank headquarters yesterday.
Deputy Governor SK Sur Chowdhury was also present at the meeting.
Coming out of the meeting, he told the journalists that NBFIs would not get any more consideration from the central bank in case of financial irregularities.
He said the central bank had denied a proposal of increasing documentation fee as it would worsen credit burden on the clients.
Bangladesh Bank also rejected the proposal of not receiving feedback from clients during post-loan-disbursement period and revising the policy on buying luxury cars through lease financing, SK Sur said.
On January 16 Bangladesh Bank had imposed a restriction on spending by the commercial banks to purchase motor vehicles, apparently to prevent buying spree of luxury cars by taking lease financing facility from other banks and financial institutions.
The NBFIs, however, urged the central bank to relax the restriction as it affected their business badly.
The central bank advised the NBFIs to continue their existing lower non-performing loan rate as their current bad loans have decreased through relaxing loan rescheduling facility, said a senior executive of Bangladesh Bank who was present at the meeting.
The non-performing loan rate rose to 5.49% in June from 5.45% in March, according to the central bank data.
The total classified loan stood at Tk1,866 crore in June against the total outstanding loan of Tk34,042 crore.
Of the financial institutions, Midas Finance holds the highest classified loans of 32.86%, followed by Premier Leasing 22.43% and FAS Finance and Investment Ltd 45.45%.
Governor expressed annoyance at three financial institutions for not complying with the capital requirement of Tk100 crore, said Shah Alam, General Manager of Department of Financial Institutions and Markets at the central bank.
They include Midas Finance, GSP Finance and Bangladesh Industrial Finance Company Ltd (BIFC). Of them, Midas Finance already exceeded its scheduled time in April to increase capital base to Tk100 crore. Other two FIs, however, have time till September to comply with the capital requirement.
Midas Finance already got approval of Bangladesh Securities and Exchange Commission (BSEC) to issue right shares in order to increase capital.
GSP Finance is in the process of issuing right shares while BIFC will increase its capital through injecting fresh fund, the central bank official said.
