Bangladesh Bank has directed banks and non-bank financial institutions (NBFIs) to promptly report wilful defaulters to the Credit Information Bureau (CIB). According to the recent notice issued by the central bank, starting from July this year, banks and NBFIs are required to update the CIB database in real time with information on wilful defaulters. In March, the banking regulator issued guidelines for identifying wilful defaulters, followed by instructions in the subsequent month for banks to establish dedicated units for this purpose. Once a borrower defaults on a loan, the unit must determine within 30 days whether the default was wilful or not, as outlined by the BB guideline. Additionally, once someone is identified as a wilful defaulter, banks and NBFIs must decide on appropriate measures to address the issue.
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