BB warns banks over SME loan misreporting

Bangladesh Bank yesterday warned bank and non-bank financial institutions on misreporting about small and medium enterprise (SME) loans, a top official of the central bank said yesterday.
The regulator has also asked the banks to set up dedicated desk for women entrepreneurs immediately to avoid punishment.
“We've seen that some banks are diverting other loans, such as consumer loans, into SME loans, violating the rules. We've cautioned them (banks and non-banks) not to do it anymore,” Sukamal Sinha Choudhury, general manager for SME and Special Programmes Department of the BB, told The Daily Star.
Choudhury sat with the heads of the SME department of different commercial banks to discuss the issue at his office yesterday. On Monday, he talked to the SME heads of non-banks.
On setting up desks for women entrepreneurs at all branches, he said though the decision was taken nearly three years ago, many banks are yet to comply with the decision.
There are around 8,000 bank branches across the country. Every branch has to open a desk dedicated for women. “We'll impose fine if we don't find a desk for women,” said Choudhury.