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BB reins in NBL’s loan, no LC without cash

News Desk || risingbd.com

Published: 20:11, 23 January 2023  
BB reins in NBL’s loan, no LC without cash

Photo: Collected

The National Bank Limited (NBL) will not be able to issue more than Tk10 crore in loans to a single borrower without the permission from the Bangladesh Bank (BB) from now on.

Alongside, the central bank has issued instructions that the bank cannot open an import letter of credit (LC) without 100% cash deposit.

Besides, the bank will not be able to renew old loans without collecting due installments.

A letter has been sent to the National Bank with instructions in this regard from the Department of Off-Site Supervision of the Central Bank on January 22.

The move is meant to protect interest of the bank’s depositors and ensure proper implementation of the memorandum, according to the letter.

However, such directives of the central bank are not new in the case of the National Bank. 

Earlier, the central bank stopped the bank’s loan disbursements. The restrictions were later relaxed. The central bank has imposed some restrictions on the bank.

NF/AKA