, April 2 -- Bangladesh Bank (BB) Governor Mostaqur Rahman has said that a policy is being formulated to directly verify large corporate loan proposals before they are sanctioned by commercial banks.

The move is intended to check the rising trend of defaulted loans in the country's banking sector, according to central bank officials.

The Governor shared the plan during an exchange of views with business editors of some television channels in the central bank headquarters. Following the meeting, BB Spokesperson and Executive Director Arif Hossain Khan briefed journalists on the details.

"Large corporate loans are typically approved by commercial banks. However, the central bank is now considering a process where it will also verify thes...