Use official names of borrowers for CIB reporting

The Bangladesh Bank (BB) today asked banks to report on lending to firms in line with their officially registered names.
The central bank said it noticed that loans were being approved using the names of separate units of companies. These units produce different goods and services and are established in different areas.
In order to bring greater transparency, the BB said banks will have to present reports on their lending to the Credit Information Bureau (CIB) as per the names registered at the Registrar of Joint Stock Companies and Firms (RJSC).
“We have issued the directive so that lending to a company or a group of companies remains within the single borrower exposure limit of 25 percent. Because of lending to units instead of using registered names, it becomes difficult to recognise whether the entity is part of any business group or a separate company,” a senior official of the BB said.
The central bank hoped loan reporting to CIB in line with officially registered names of the companies will bring about transparency.