BB publishes list of 131 firms for collateral valuation of bank loans

The Bangladesh Bank has published a list of 131 eligible valuation firms and companies for the assessment of mortgaged or collateral properties of borrowers of scheduled banks.

The central bank issued a circular from its Banking Regulation and Policy Department-1 on Monday.

According to the circular, 131 firms have been listed as eligible under the guidelines for listing collateral valuation firms or companies issued on November 28, 2023. Of these, 98 firms have been placed in 'A' category and 33 in 'B' category.

The Bangladesh Bank has advised scheduled banks to carry out valuation of collateral provided against loans taken or to be taken by their customers through these listed firms, following the central bank's valuation directives issued from time to time.

The approval of the listed firms will be valid for three years. They have been asked to apply for re-listing at least six months before the expiry of the term. However, if a firm fails to comply with the conditions of the policy, the Bangladesh Bank may remove it from the list even before the three-year term is completed.

The listed firms have also been instructed to submit annual reports by January 15 each year. The Bangladesh Bank has stated that these directives have been issued under the powers conferred by the Bank Companies Act, 1991.