Dhaka, Oct. 19 -- The Bangladesh Bank (BB) has introduced key amendments to its loan write-off policy, making it mandatory for banks to notify defaulting borrowers before removing bad loans from their balance sheets.

Under the amended rules, banks must ensure that the borrower is notified about the loan write-off decision at least 30 working days before the action is taken.

The Banking Regulation and Policy Department (BRPD) issued a circular in this regard on Sunday. The circular is aimed at aligning the national banking regulations with international best practices.

The central bank's circular revises existing guidelines on loan write-offs and the creation of dedicated recovery units, effective immediately.

This notification is deem...