STAR BUSINESS REPORT

Bangladesh Bank yesterday asked non-bank financial institutions (NBFIs) to form a separate “wilful defaulters identification unit” within this month.

The unit will identify whether defaulting borrowers, meaning individuals and institutions, are wilful defaulters, as per the central bank notice.

A wilful defaulter is one who does not repay their loan, advance, investment or any other financial benefit taken by themselves or their family members or institutions despite their ability to furnish the sum.

If a defaulter is identified as a wilful defaulter as per the Finance Companies Act 2023, the borrower concerned will get 14 working days to present their statement on the issue.

The borrower will continue to be marked as a wilful defaulter until the funds are recovered fully.

The list of wilful defaulters will be sent to the Bangladesh Securities and Exchange Commission and the Registrar of Joint Stock Companies and Firms and a ban on foreign travel and trade licences will be imposed in line with the Finance Companies Act 2023.