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Tougher rules for big borrowers 

January 21, 2014
Sajjadur Rahman

Many borrowers will no longer qualify for big loans as the central bank has tightened rules for large-scale lending.
If the big borrowers fail to provide sufficient collateral against the loans, they will fall into the 'marginal' group on a scale of eight categories in credit risk assessment.

Previously, the borrowers with insufficient collateral had qualified for such loans.
“A large borrower can be a 'marginal' client for many reasons, including insufficient collateral. It is becoming a difficult issue for the bankers,” said Nurul Amin, managing director of NCC Bank.

Amin said there are some power plants, big spinning mills and shipbuilders that need huge capital but it becomes impossible for some of the borrowers to give 100 percent collateral against such big loans.

Read more: The Daily Star
 
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