News Desk
The Daily Star
Publication Date : 18-02-2013
Bangladesh's middle bank has introduced a network for send and shut monitoring of large loans in thecontext of assorted cases of piracy inclusive that of the Hall-Mark Group.
Bangladesh Bank (BB)Governor Atiur Rahmanon Sundayinaugurated the operations of 'large-loan monitoring software' at the Bank's domicile in Dhaka.
"In the existing system, it is not probable to obtain an thought about the nature, expansion and future of loans taken by a borrower, but beneath the new network roughly all large borrowers will be kept beneath despotic monitoring," Rahman mentioned at the function.
Banks will have to sustain a database of large borrowers and make the information existing online is to middle bank.
The information to be submitted add the borrowers' debt-equity ratio, profitability, loan thoroughness in a sector, and the amount of non-funded trickery converted to saved facility.
About 25-30 per cent of the banks' complete loans are in the hands of large borrowers, according to BB statistics.
Sonali Bank's Ruposhi Bangle Hotel branchhad givenHall-Mark and 5 other companies a complete of 35.47billion Bangladeshi taka (US$447 million)in loans and a large segment of the loans was non-funded by bill purchase.
These loans combined a large liquidity predicament in the whole promissory note system.
The BB has so far taken assorted stairs to stop the regularity of such scams, and monitoring large loans using the new program is a of these.
The commissioner mentioned the BB has taken up multipronged programmes to bring vital changes in its monitoring. He mentioned the middle bank has been monitoring the on the whole incident in the promissory note zone by assorted measures.
Rahman mentioned the new network will enable the BB to know how the non-funded loans spin in to saved loans, their successive expansion and the amount.
Due to non-funded loans, the loan portfolios of the banks become dangerous and leads to enlarge in default loans.
The program will enable BB to predict on any liquidity predicament and suggest the banks on visual measures to take, Rahman said.
*US$1= 79.2 Bangladeshi taka