BB relaxes rule of storing audited financial report for CMSMEs

Bangladesh Bank (BB) has revised the directive to maintain the audited financial reports of loan renewals and file of new loans in accordance with the rules in order to bring order and transparency in CMSMEs loan disbursement.

But considering the global economic situation and to accelerate the economic activities of the country, the time frame for renewal of loans to 'cottage, micro, small and medium sector entrepreneurs (CMSMEs)' and guidelines for preservation of audited financial reports has been extended by two years.

On Monday, the Banking Regulations and Policy Department of BB issued a circular in this regard and sent to the executives of banks for immediate execution.

The circular stated that the companies in the CMSME sector, which are considered as public interest entities according to the Financial Reporting Act, the financial reports audited by the chartered accountants at the time of loan approval and renewal of those companies must be compulsorily stored in the loan file from 1 January 2025.

In the earlier directive, the retention period for these loans was fixed from 1 January 2023.

The new directions have been emphasised to accelerate the economic activities of the country by taking into account the global economic situation and by increasing the flow of credit to the CMSME sector.