BB, Karmasangsthan Bank sign CIB agreement

Karmasangsthan Bank has signed an agreement with Bangladesh Bank regarding the Credit Information Bureau (CIB) to facilitate the verification of borrower data, ensure transparency and accountability in loan management, and control loan defaults.

The agreement was signed on Monday at the Bangladesh Bank head office.

The agreement was signed on behalf of the respective institutions by Md Shafiqul Islam, director of the CIB at Bangladesh Bank, and Arun Kumar Chowdhury, managing director of Karmasangsthan Bank.

Md Anis Ur Rahman, deputy governor of Bangladesh Bank, was present as the chief guest at the agreement-signing ceremony.

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The event was chaired by Ashish Kumar Roy, executive director (Statistics-1) of Bangladesh Bank. Special guests included Shabnam Shirin, executive director (Statistics-2); Md Mojibur Rahman Sheikh, executive director; Muhammad Mahfuzur Rahman Khan, director; Md Shafiqul Islam Mia and Md Amirul Islam, general managers of Karmasangsthan Bank; and Md Mashiur Rahman and Muhammad Masudur Rahman, deputy general managers. Senior officials from both Bangladesh Bank and Karmasangsthan Bank were also present.

Through this agreement, Karmasangsthan Bank will be able to verify the existing loans, repayment history, and other credit-related information of loan applicants via the Credit Information Bureau (CIB) of Bangladesh Bank.

This will facilitate access to more reliable information regarding an applicant's credit status prior to the approval of a loan.

In particular, it will be possible to assess lending risks by verifying information regarding a borrower’s exposure to multiple banks and financial institutions, their existing debt obligations, and any irregularities in loan repayment.

Consequently, this agreement will help strengthen due diligence in loan disbursement, establish discipline in loan management, mitigate inadvertent credit risks, and enhance efficiency in the management of loan documentation.