SANCTIONING LARGE LOANS TO REQUIRE BOARD'S APPROVAL

Any proposal for sanctioning large loan or lease of the non-banking financial institutions (NBFIs) will require approval from their board of directors.
"The NBFIs will not allow sanctioning any large loan or lease without approval of their board of directors," a senior official of the Bangladesh Bank (BB) told the FE Monday.
He said the central bank has taken the measure to ensure good and corporate governance in the NBFI management through specified responsibilities and authorities of the top management.
The central bank issued a circular in this connection Monday and asked the chief executives and managing directors of NBFIs to abide by the instructions relating to approval of large loan or lease.
Under new provisions, loan or lease sanctioned to any individual or business entity or business group amounting to 15 per cent or more of the total capital of a NBFI will be considered as large loan.
- Financial Express