• Tuesday, December 31, 2013

Deadline to cut single-borrower exposure extended by a year

Star Business Report

The deadline to adjust loans for subsidiaries such as merchant banks was extended by a year, Bangladesh Bank said in a notice
Under the new deadline, banks will have to adjust the excess amount of their loans over the single borrower exposure limit to their subsidiaries by December 2014.
The central bank extended the deadline against a backdrop of political turmoil.
The banks were scheduled to adjust the single borrower exposure limit at 15 percent of their capital by December 31 this year.
At present, five to six banks have greater-than-limit exposure.
A BB official said the central bank will also be flexible on the loan provisioning of banks, which incurred losses when the stockmarket was hit by a major crisis three years ago.

Banks have been given scope to provision their loans in four to five instalments and it will be decided case by case, the official added.

Published: 12:00 am Tuesday, December 31, 2013

Last modified: 8:03 pm Tuesday, December 31, 2013

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