Bangladesh Bank has issued a new directive removing the previous time restriction on writing off default loans. According to the circular released by the Banking Regulation and Policy Department (BRPD) on November 19, banks can now write off loans classified as bad or loss if recovery is deemed unlikely, without waiting for a specific time period. Previously, only loans classified as bad or loss for two consecutive years were eligible for write-off. The new rules prioritize older classified loans and require banks to notify borrowers at least 10 working days before writing off their loans. The directive, which takes immediate effect, aims to streamline the loan management process and improve the accuracy of banks’ financial statements by clearing long-standing non-performing assets from their books.