Bangladesh Bank has instructed all scheduled banks and non-bank financial institutions (NBFIs) to immediately update borrowers’ loan repayment data.

The instructions came amid a surge of last-minute efforts by aspiring election candidates, including influential business and political figures, to clear overdue installments and avoid disqualification ahead of the national polls. Bank and central bank officials confirmed a sharp rise in loan-regularisation requests as potential candidates attempt to bring their accounts back to “regular” status before the legal cutoff.

The central bank’s Credit Information Bureau (CIB) has issued a strict directive requiring all financial institutions to ensure rapid and accurate reporting of every loan account.

Officials said that even if borrowers obtain a court stay order, banks must report the actual status of the loan without alteration or concealment.

“There will be no scope to hide information or give undue concessions,” a CIB official said, adding that the government has made it clear that no loan defaulter will be allowed to contest the election.

At a high-level meeting on October 29, CIB representatives from all banks and NBFIs were informed of the government’s firm instruction: loan data must be fully updated before the polls to ensure defaulters are barred from running.

Arief Hossain Khan, executive director and spokesperson of Bangladesh Bank, said the central bank is updating loan records as per government directives and noted that submitting accurate credit information is a routine responsibility of banks.

Financial institutions have also been ordered to strictly follow loan rescheduling rules, as some borrowers seek last-minute regularisation of long-overdue defaults.

Bangladesh Bank stressed that no special exemptions, relaxed terms, or rule violations will be tolerated ahead of the election.

Mandatory data updates

Banks must urgently submit updated reports that include status of all active and settled loans, with accurate balances and classifications, maturity dates and overdue amounts, number and value of defaulted instalments, and details of instalment payments and recoveries. All updates must reflect the actual month-end outstanding balances for each loan account.

To facilitate continuous verification of candidates’ loan records, every bank branch must appoint a dedicated officer and share their name and mobile number with Bangladesh Bank. Under electoral law, a candidate will be disqualified if their bank loan is not classified as regular up to seven days before filing nomination papers.