BB asks banks for willful defaulter list on CIB database

Bangladesh Bank (BB) on Tuesday instructed banks to submit information related to willful defaulters in the Credit Information Bureau (CIB) database.

At the same time, commercial banks and non-banking financial institutions (NBFIs) have been directed to report June data on July 1 in real-time.

The CIB of the central bank issued a circular in this regard on Tuesday and sent it to the top executives of banks for immediate execution.

Earlier, the BB took the initiative to identify the willful defaulters in the banking sector through a circular on March 12. Besides, the central bank also specified what action will be taken against the willful defaulters.

According to the circular, if a defaulting client takes a loan anonymously and misuses that loan, it will be marked as a willful defaulter. It was also directed to form a 'willful defaulter identification unit' by April 9 to identify willful defaulters.

The circular also said that if any bank violates the conditions of this directive, it will be fined at least 50 lakhs and a maximum Tk1.0 crore. And if the condition continues to be violated, a fine of Tk 1.0 lakh per day will be imposed.