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Provision against unclassified credit card loans relaxed

  • Published at 02:37 am August 21st, 2017
Provision against unclassified credit card loans relaxed
The central bank has lowered the ceiling of general provision against all unclassified credit card loans to 2% from 5%. Bangladesh Bank issued a circular in this regard on Sunday for all scheduled banks across the country. The circular will come into force with an immediate effect. According to the circular, with a view to promoting cashless secured transaction and considering the cost of operation of credit card business, the above instruction regarding general provision against unclassified credit card loans under consumer financing has been revised. Banks will be required to maintain 2% general provision against all unclassified credit card loans under consumer financing, added the circular. Earlier, banks used to maintain 5% general provision against unclassified credit card loans under consumer financing.