What is the role of Bank’s Credit Committee for rescheduling of loan in Bangladesh?

Answer:

(i)      Rescheduling of any loan must be justified in written statement by the bank’s Credit Committee.

(ii)    The statement must give reasons why the rescheduling is beneficial to the long-run profitability and capital adequacy of the bank, including the factors that cause the Credit Committee to believe that the loan will ultimately be repaid in full.

(iii)    The statement must also explain the impact of this rescheduling on the bank’s liquidity position and the needs of other customers.