Banks are not adhering to Bangladesh Bank’s existing loan renewal guidelines, which require full restructuring or renewal within the current loan tenure. Instead, some banks are approving renewals by setting new loan limits that exceed the original, sometimes transferring the excess amount as separate loans—actions against banking regulations. To maintain loan discipline, Bangladesh Bank has issued two strict directives: loans must be renewed within their original tenure, and any excess beyond the original limit cannot be separated or treated as a new loan.
Banks are not complying with the ongoing loan renewal instructions. In this situation, Bangladesh Bank has issued two directives regarding such loan renewals going forward. Today, Wednesday, the central bank’s Banking Regulation and Policy Department issued a circular on this matter.
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