Central bank to recognise good borrowers

Bangladesh Bank plans to frame a policy to provide incentives to good borrowers, as there has been an allegation that the central bank stands by only defaulters.

“I have instructed the concerned department to prepare a rebate policy to provide facilities and incentives to borrowers who have repaid their loans in time,” Bangladesh Bank Governor Atiur Rahman said yesterday.

The response from the regulator came at the launch of the Monetary Policy Statement for the second half of the current fiscal year after the BB formulated a large loan restructuring policy for bad borrowers.

Defending the policy for the large but bad borrowers, he said, “We have formulated it for the sake of the economy and job creation.”

“If we don’t address the issue, banks will not be benefitted. But if we can introduce it, banks will get more money. Which one is better?” he said.

The central bank has formulated the large loan restructuring policy after studying the experience of countries such as India, Sri Lanka and Malaysia, Rahman said.