Bangladesh Bank has instructed the non-banking financial institutions (NBFIs) that the institutions cannot change any of their vehicles before eight years. Earlier, as per a 2015 directive, there was an opportunity to change vehicles after every five years. Read: Loans won’t be considered ‘at risk of default’ if 50% instalment paid by Dec: Bangladesh Bank In line with the government's decision to reduce operational and development expenditure in the context of the global economic situation, purchases of any type of vehicles (new and replacement) at the official expenses by NBFIs will be suspended during the fiscal year 2022-23. The Financial Institutions and Market Department of Bangladesh Bank on Wednesday (December 21, 2022) issued a circular in this regard. The chief executives of financial institutions cannot be given multiple vehicles at companies’ expenses. Apart from this, BB has instructed that the officers who take car loans and maintenance cost cannot use the companies’ vehicles. Read More: BB relaxes loan repayment for NBFIs

Bangladesh Bank (BB) on Wednesday (December 21, 2022) relaxed term loan repayment policy for non-bank financial institutions (NBFIs) after relaxing such policy for banks’ borrowers. The borrowers would not be declared as defaulters if at least 50 percent of the installments are paid as of September, according to a notice of the central bank. The rest of the installments could be repaid on a monthly or quarterly basis within one year after the current repayment schedule of the loan. Read more: BB relaxes ICRRS to facilitate businesses’ loan The loan repayment relaxing policy would also be applied for the funding in investment of shariah-based financial institutions. If borrowers fail to repay the loans, lease and investments within the new repayment schedule, they would be classified as per rules, the BB notification said. The circular stated that the NBFIs are facing difficulties in realising installments on time as the cash flow to SMEs and large enterprises has been affected by the Russia-Ukraine war and global recession. Read more: BB extends tenure of relaxed ‘risk-weighted’ funding in new investment