BB forms committee for loan recovery
Staff Reporter :
Bangladesh Bank has established a five-member selection committee on Thursday tasked with providing policy support for the restructuring of businesses and financial operations of affected borrowers.
The measures have been taken to address various external economic challenges.
Officials stated that this initiative aims to stabilise the banking sector and sustain economic activities in light of ongoing global and domestic uncertainties.
The committee is composed of representatives from Bangladesh Bank, the Ministry of Finance, and the private sector.
The committee is headed by Mezbah Ul Haque, Executive Director of the Off-site Supervision Department at Bangladesh Bank, with members including Dr. Delwar Hossain, Joint Secretary of the Financial Institutions Division; Mamun Rashid, Economist; and Abdul Haque, Business Representative from Haq’s Bay.
Shahriar, Director of the Banking Regulation and Policy Department, serves as the Member Secretary.
Many businesses in Bangladesh have faced financial difficulties due to factors beyond their control, such as the COVID-19 pandemic, the Russia-Ukraine conflict, global economic slowdown, floods, and political unrest.
To mitigate these impacts and support loan recovery, the newly formed committee will propose necessary policy measures to help rehabilitate affected businesses, ensuring their survival and profitability.
The selection committee will determine if borrowers have genuinely been impacted by uncontrollable events.
It will also assess the feasibility of restructuring distressed businesses through policy measures, helping them regain operational efficiency and repay their loans.
Spokesperson Husne Ara Shikha confirmed that there is no fixed timeline for the committee’s work. However, members can receive compensation for up to two meetings per month, she said.
Shikha added that the committee’s focus includes loans of Tk 50 crore or more that have been classified due to external economic factors. Its recommendations will concentrate on policy-driven solutions to restore business sustainability and enhance financial stability in the banking sector.