Steps taken to amend money loan court act: governor

Bangladesh Bank has taken initiatives to amend the Money Loan Court Act to accelerate the disposal of default loan cases and strengthen the country's loan recovery framework, the central bank governor, Mostaqur Rahman, said today.

The central bank is also drafting a Distressed Asset Management Company Act to facilitate the resolution of non-performing and unrecoverable loans, the governor said.

As part of the government's Stolen Asset Recovery Initiative, assets worth approximately $25 million have already been frozen in the United Kingdom, Rahman said, adding that efforts are underway to repatriate the funds at the earliest opportunity.

The governor made the comments at a meeting with leaders of the Editors' Council at Bangladesh Bank headquarters in Dhaka.

Highlighting the need for a sound and resilient banking sector, the governor stressed the importance of insulating banks from political influence.

He said the ongoing reform programme is focused on strengthening professionalism, accountability and corporate governance in bank management and lending operations.

Rahman also outlined Bangladesh Bank's vision for a fully integrated digital financial ecosystem.

Key initiatives include the introduction of digital nano-loans, artificial intelligence-based credit assessment systems and the licensing of credit bureaus to improve access to finance and risk management.

He said the concept of "One Citizen, One Identity, One Wallet" would play a central role in accelerating the country's digital transformation and expanding financial inclusion.

Addressing foreign exchange facilities for medical treatment abroad, the governor said Bangladesh Bank is providing expedited approvals for foreign currency requirements exceeding existing limits, subject to applications submitted through the concerned banks.

He further said that the interest rate on funds used for bill discounting under the Usance Payable at Sight facility has been reduced, a move expected to lower import costs and help ease prices in the domestic market.

The governor also updated editors on the progress of the government's bank consolidation programme involving financially weak institutions.

He said several administrative and management-level reforms have already been implemented.

The restructuring process is expected to gather pace once the banks' Core Banking Systems are upgraded and integrated.

Among those attending the meeting were Editors' Council President Nurul Kabir, editor of New Age; General Secretary Dewan Hanif Mahmud, editor of Bonik Barta; Shamsul Huq Zahid, editor of the Financial Express; Matiur Rahman Chowdhury, editor of Manabzamin; Matiur Rahman, editor of Prothom Alo; AMM Bahauddin, editor of Daily Inqilab; Shahed Mohammad Ali, editor of the Daily Samakal and Mustafa Mamun, editor of Agamir Somoy.