Banks can write off debts that have been marked bad for three years from their balance sheet, according to new decisions announced on Wednesday. Bangladesh Bank is also allowing banks to write-off of up to Tk 200,000 loan without starting any case. Economists and bankers believe the new central bank decisions will help cut default loans by a huge amount. Policy Research Institute Executive Director Ahsan H Mansur, however, has questioned the “sudden” central bank move. It will be “unfortunate” if the policy has been changed to “cut loan defaults in papers only”, according to Mansur.

Source: bd News24 February 06, 2019 16:52 UTC