Bangladesh Bank seeks list of willful defaulters with identities

Bangladesh Bank has instructed all banks to submit comprehensive information on willful defaulters in a separate format.

“It is mandatory to include all relevant details, including the names and identities of willful defaulters,” the central bank said in its directive.

The Banking Regulation and Policy Department of Bangladesh Bank issued the notification with immediate effect on Wednesday.

Banks are required to submit information to the Credit Information Bureau (CIB) of Bangladesh Bank every quarter.

Previously, a similar directive was issued on 12 March 2024, which asked banks to report on the actions taken against willful defaulters. The latest directive introduces further amendments regarding the reporting process.

According to the new circular, three specific instructions have been outlined for reporting willful defaulters to the central bank:

First, once banks identify and finalise willful defaulter borrowers, their details must be submitted to the CIB of Bangladesh Bank. These borrowers should be categorised as ‘willful defaulters’ in the CIB records.

Second, banks must submit consolidated data on willful defaulters in a statement on a quarterly basis. This report should also be submitted to the Banking Regulation and Policy Department by the 10th day of the month following the end of each quarter. All relevant documents must accompany this submission.

Third, the names, mobile numbers, and e-mail addresses of the members of each bank’s identification unit responsible for handling willful defaulter cases must also be provided.