Dhaka: Bangladesh Bank (BB) has published a list of 131 eligible valuation institutions and companies to conduct asset appraisals for collateral pledged against bank loans, aiming to ensure transparency and accuracy in debt security evaluations. The central bank issued the directive on Monday through the Banking Regulation and Policy Department, instructing all scheduled banks to execute collateral valuations strictly through these approved entities, effective immediately.
According to United News of Bangladesh, under the enlistment policy introduced on November 28, 2023, the central bank evaluated candidate firms and categorized the 131 approved entities into two groups: 98 firms in Group ‘A’ and 33 firms in Group ‘B’. The instruction was issued under Section 29A of the Bank Company Act, 1991 (amended up to 2023).
The circular stated that the enlistment will remain valid for three years. Enlisted companies must apply for re-enlistment six months prior to the expiration of their term. However, Bangladesh Bank reserves the right to delist any firm at any point during the three-year period if it fails to comply with guidelines or for any reasonable cause.
Furthermore, all listed valuation firms must submit an annual report to the Banking Regulation and Policy Department-1 of Bangladesh Bank in the prescribed reporting format by January 15 of the following year.
The central bank emphasized that scheduled banks must consistently adhere to all existing and future collateral valuation directives issued by BB to maintain financial discipline and safeguard bank assets.