Dhaka: Bangladesh Bank (BB) has directed banks and financial institutions to incorporate private sector foreign loans, including suppliers’ credit, into the Credit Information Bureau (CIB) database to enhance transparency and bolster credit risk management in the nation’s financial sector. This directive will be effective from November 1, 2025.
According to Bangladesh Sangbad Sangstha, the central bank’s initiative aims to monitor external debt and conduct comprehensive risk assessments of borrowers. Currently, the absence of foreign loan information in the CIB database means a borrower’s actual debt burden is not reflected in their CIB report, allowing defaulters on foreign loans to potentially secure new local loan facilities.
The new instructions require nominated banks to report detailed information about private sector foreign loans. The circular specifies that all private sector foreign loans, including suppliers’ credit accepted by individuals or institutions, must be approved by the Bangladesh Investment Development Authority (BIDA) or Bangladesh Bank. Certain loan facilities that do not require such approval must also be reported, provided they are not treated as the bank’s own funded or non-funded loans under existing provisions and do not create any liability for the bank.
Banks must report foreign loan data in the approved foreign currency, with corresponding outstanding and overdue amounts reported in equivalent USD. Additionally, information about the foreign lender, including their name, address, and country, along with details of the relevant Bangladesh approval authority, must be submitted for each loan.
Nominated banks are tasked with collecting supporting documents from borrowers, including the CIB enquiry form, form XII, and schedule X issued by the Registrar of Joint Stock Companies (RJSC), as well as other pertinent information. They must report data on the foreign loan borrower and any individuals or institutions with an interest in the loan, such as directors, shareholders owning more than 20%, and guarantors, following the CIB circular and reporting guidelines.
Monthly reporting of private sector foreign loan data to the CIB database will commence on November 1, 2025, with the first submission including loan information up to October 2025. Importantly, any changes to a loan, such as obtaining a new foreign loan or making adjustments to an existing reported loan, must be reported immediately to the CIB database in ‘Real Time’.
Banks that submit false or erroneous information or conceal data within the CIB database will face penalties.