Monday, June 26, 2017

What are the rules for Loan to Director of own Bank in Bangladesh?



Answer:
The total amount of the loan facilities extendable to a Director or to his relatives should not exceed 50% of the paid-up value of the shares of that bank held in Director's own name.
Subject to compliance of the conditions mentioned in paragraph No.1 above, loan facilities in excess of Tk.50 lacs (including all direct or indirect loan facilities such as bank loan, all types of contingent liabilities like Letter of Credit and performance bond, bid bond or guarantee etc.) in favor of any Director or his relatives or proprietorship or partnership firms and private or public limited companies wherein those persons have interests, can be extended obtaining no-objection from Bangladesh Bank. Besides, subject to the limit as outlined above, if the amount of direct loans   like Cash Credit, Overdraft, LIM, Pre-shipment Credit, LTR etc. is more than Tk.10 lacs, no-objection from Bangladesh Bank is to be obtained.

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