The Bangladesh Bank, on Sunday, relaxed loan disbursement rules under the Tk30,000 crore stimulus package, giving banks 10 days – after every quarter – to adjust the extra amount if loans exceed the sanctioned limit.
Earlier, banks had five days after every quarter to adjust loans that exceeded the limit.
According to central bank instructions, total outstanding bank loans – including interest – cannot exceed the sanctioned loan limit of a borrower. If the limit is exceeded, the banks now have to adjust the exceeded amount within 10 days of a quarter's end.
The central bank, in a circular, also asked banks to verify entities so that they can get authentication certificates from the Federation of Bangladesh Chambers of Commerce and Industries.
On April 12, the Bangladesh Bank issued a guideline setting strict conditions for loan disbursement under the Tk30,000 crore stimulus package.
The conditions include maintaining a single borrower exposure limit, loan classification and provisioning rules, and the highest loan limits for both banks and clients.