BB asks banks to strengthen monitoring on loan disbursement

FT ONLINE

Bangladesh Bank (BB) on Tuesday asked the banks to strengthen their monitoring activities at the time of credit disbursement as per the Credit Risk Management Guidelines to ensure the appropriate use of loans.

“All instructions, regarding the credit disbursement and next activities, have been included in the Credit Risk Management Guidelines. If the banks follow the instructions properly, there will be no possibilities of misusing the loans,” said a BB circular issued in the capital.

BB warned the banks that if the central bank finds out any negligence at the time of loan disbursement, it will take necessary actions against the responsible persons as per the Bank Company Law, 1991.