The Bangladesh Bank (BB) has set a harsh 11-point roadmap to realise default loans and ensure good governance in bank operations.

The central bank board meeting on Sunday approved this roadmap for establishing good corporate governance in banks along with a guideline for reducing huge amounts of default loans, Bangladesh Bank Deputy Governor Abu Farah Md Nasser told UNB.

BB Governor Abdur Rouf Talukder presided over the meeting.

Nasser said the defaulters would be deprived of various benefits such as disqualification in buying new land, house, car, or even opening a new business.

“The board of directors has taken such harsh decision to reduce overall defaulted loans to 8%, state-owned bank defaulted loans ratio to reduce by 10% and 5% respectively, and reduce fraud, disguise and limit cross loan disbursement to zero level,” said Nasser.

The central bank introduced a new rule to keep 100% provision before the write-off loan defaulted for two years from three years. As a result, Tk43,300 crore bad loans will be reduced.

A bank has to form a unit in coordination with the bank’s managing director to realise the write-off loans, he said.

The stressed asset (defaulted loans) is to be shown in a separate balance sheet until realisation of the loan.