NBFIs warned of lending lapses
Bangladesh Bank yesterday warned non-bank financial institutions (NBFIs) to comply with regulations strictly and in case of failure, face tough actions.
The warning came as an advance caution for the country's financial sector so it does not face any crisis like that of global financial crisis.
Dr Salehuddin Ahmed, governor of the central bank, asked the NBFIs to be extra-cautious in running their businesses, taking lessons from the collapse globally, as he earlier warned the commercial banks to remain alert.
“They must take enough careful measures to provide loans to their clients as their business is mortgage-backed,” he told reporters after a meeting with chief executive officers of the NBFIs at Bangladesh Bank.
Expressing concern over the provision shortfall, declining trend in loan recovery and increasing bad loans of the financial institutions, the central bank asked them to take measures to overcome the ailments as soon as possible.
Replying to a question, he said the central bank would not allow the NBFIs to mobilise deposits from the people at this moment. “We'll have to examine further.”
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