Ban on foreign travel among penalties for Bangladesh’s wilful bank loan defaulters

Bangladesh Bank took the move when the banking sector has been hit by massive irregularities of some lenders, directors' undue intervention and rising bad loans.

ggggggggggggggggggggggggg.jpg

Representative illustration of loan defaulters. PHOTO: THE DAILY STAR

March 13, 2024

DHAKA – Wilful defaulter will be banned from travelling abroad and they will not be allowed to receive trade licences and national awards, according to a guideline issued by Bangladesh Bank today.

The guideline was prepared for identification and finalisation of wilful defaulters and actions to be taken against them.

The banking watchdog took the move when the banking sector has been hit by massive irregularities of some lenders, directors’ undue intervention and rising bad loans.

On February 4, the Bangladesh Bank unveiled a roadmap to bring down default loans below 8 percent by June 2026 from 9 percent in 2023 and ensure corporate governance in the banking sector.

The BB has taken 17 initiatives to implement the roadmap.

scroll to top