Banks asked to ready default data of poll candidates

Bangladesh Bank (BB) has instructed scheduled banks to ensure accurate and complete reporting of loan default information for candidates submitting nomination papers for the upcoming 13th national parliamentary election.

The instruction came from a meeting on December 7 between Bangladesh Bank and a delegation of the Association of Bankers, Bangladesh (ABB), presided over by Bangladesh Bank Governor Ahsan H Mansur.

The central bank is likely to issue a letter to banks in this regard soon.

Ahead of the polls, the banking watchdog emphasised that all credit information related to aspiring candidates must be prepared "quickly, accurately, and comprehensively" to support the Election Commission in verifying the financial status of nominees.

According to BB's directive, banks must strictly follow existing BB circulars on loan classification and ensure that the Credit Information Bureau (CIB) database reflects the correct status of all loans, including any off-balance-sheet liabilities.

Officials of the central bank said that several recurring gaps in CIB reporting remain—such as outdated borrower identification data, incomplete reporting of persons or entities linked to a loan, and misclassification arising from unpaid non-transactional credit card fees.

Banks have been asked to correct any adverse classifications made solely due to unpaid annual fees, renewal charges, or similar non-transactional dues, as such liabilities do not render a borrower a defaulter under current rules.

Lenders have also been instructed to immediately update KYC and e-KYC information of borrowers and all associated persons or institutions, in line with the definition of a "defaulter" under Section 5 of the Bank Company Act, 1991.

In addition, banks have been told to take steps—such as appointing legal counsel—to expedite the resolution of CIB-related cases pending with the High Court.

They must also inform the CIB of any court cases that have already expired or reached a verdict so the database can be updated accordingly, said BB officials who attended the meeting.