BB Seeks Detailed List of Wilful Defaulters with Identities

Bangladesh Bank has directed all scheduled banks to submit detailed and comprehensive information on wilful defaulters, including their names and identities, in a newly prescribed format.

The directive, issued on Wednesday by the central bank's Banking Regulation and Policy Department, takes immediate effect and is part of a broader effort to strengthen monitoring and accountability within the financial sector. The central bank stated that the updated instruction aims to ensure greater transparency and more effective reporting to the Credit Information Bureau (CIB).

As per the new circular, banks must now submit quarterly reports on wilful defaulters to the CIB, along with all relevant documents. These reports must also be sent to the Banking Regulation and Policy Department by the 10th of the month following the end of each quarter. The circular makes it clear that every borrower who has been identified and confirmed as a wilful defaulter must be officially classified as such in the CIB records.

In addition to submitting defaulter information, banks have also been asked to provide the names, mobile phone numbers, and e-mail addresses of the officers responsible for handling wilful defaulter cases within each bank’s identification unit.

Earlier on March 12, 2024, a similar directive was issued by the central bank, which focused on gathering reports about measures taken against wilful defaulters. The latest circular builds upon that initiative, introducing more specific requirements and standardising the reporting process.

This move comes at a time when concerns over rising defaulted loans and a lack of enforcement have drawn increasing public and policy attention. The central bank’s renewed focus on wilful defaulters signals a tougher stance aimed at curbing intentional loan default and strengthening discipline in the country’s banking system.