The decision was made at a recent meeting of the central bank’s supervision committee.
The meeting stressed that the commercial banks will keep loan disbursement process safe from all sorts of fraud and put special importance on the matter.
A report on visits by Bangladesh Bank officials to different branches of commercial banks was placed at the meeting.
The report covered the situation of deposits, debts and letter of credit opening in the country’s commercial banks.
Bangladesh Bank will ask the officials of commercial banks to properly scrutinise documents related with loans for export-import and also verify them online or through communication with relevant authorities.
The meeting decided to ask banks to properly or physically verify quality of the collateral, warehouses and assets related to mortgages placed for loan approval.
Banking sector insiders said there is a large amount of debt in the banking sector processed through fraudulence over the past few years.
In the recent years, Bangladesh’s banking sector has experienced a number of big loan frauds like Hall-Mark and Bismillah Group in Dhaka and Imam Group, City Group, Jehan Group and MEB Group loan anomalies in Chittagong.
Bangladesh bank officials said the central bank will take actions against commercial banks if directives of the central bank are not complied with to prevent loan frauds in the country’s banking sector.