Staff Reporter :
Bangladesh Bank has instructed all scheduled banks to urgently update loan repayment information, as aspiring MP candidates – many of them influential business and political figures – rush to clear defaults and overdue instalments to remain eligible for the upcoming national election.
Managing directors of several banks, NBFIs, and central bank officials confirmed that they are witnessing an unusual surge in applications for loan regularisation.
In response, the Credit Information Bureau (CIB) has issued a strict directive to all banks and financial institutions, requiring immediate updates of loan-related data to verify the financial eligibility of potential candidates.
According to central bank officials, even if a borrower obtains a court stay order, financial institutions must still report the original and accurate loan status to the CIB without any modification.
The Bangladesh Bank reiterated that there will be no opportunity to conceal information or extend undue privileges.
A special meeting on October 29 with CIB representatives from all banks and NBFIs communicated the government’s firm instruction: all loan data must be updated ahead of the election, ensuring that no loan defaulter can qualify as a candidate.
“The Bangladesh Bank has clearly stated that the government will not permit any loan defaulter to contest in the upcoming polls,” said a CIB official.
Arif Hossain Khan, Executive Director and spokesperson of Bangladesh Bank, said the central bank is updating customers’ loan statuses in line with government directives.
He noted that submitting accurate credit information to the central bank is part of the routine responsibility of financial institutions.
Banks and NBFIs have also been instructed to strictly follow existing rules when dealing with borrowers attempting to reschedule long-overdue defaulted loans ahead of the election. No exceptions, special permissions, or rule deviations will be allowed.
Institutions that have yet to submit their default data to the CIB have been ordered to do so without delay. Updated reports must include complete and accurate information on all new and existing loans, based on month-end outstanding balances.
Banks have been specifically directed to update the following details:
Status of all ongoing and settled loans, including accurate balances and classification categories, Maturity dates and overdue amounts, Number and value of defaulted instalments.
Records of instalment payments or recoveries. To facilitate continuous verification of loan information for election candidates, Bangladesh Bank has ordered every bank branch to assign a dedicated officer, whose name and mobile number must be submitted to the central bank.
Under electoral law, any candidate whose loan status is not classified as “regular” up to seven days before filing nomination papers will be disqualified.
Officials involved in the process believe this rigorous initiative by Bangladesh Bank will play a critical role in preventing loan defaulters from securing nominations in the upcoming election.
