Banks Ordered to Update Credit Records to Stop Defaulters Entering Election Race

Banks must file monthly updates on new and outstanding loans

Key Points

• Bangladesh Bank is refreshing credit information ahead of the national polls.

• Banks instructed to update records immediately and comply strictly with rescheduling regulations.

• Loan defaulters will be barred from standing for election.

• Actual loan status must be reported even when court stay orders exist.

• Candidates must hold a “regular” loan status at least seven days before filing nomination papers.

As Bangladesh prepares for its 13th national election, the Credit Information Bureau (CIB) of Bangladesh Bank has intensified efforts to ensure the accuracy of loan data relating to prospective candidates. The central bank aims to prevent individuals with defaulted loans from contesting the polls, in line with election eligibility rules.

On 29 October, Bangladesh Bank convened a special meeting with CIB officers representing all banks and non-bank financial institutions. Officials were instructed to upload all outstanding loan information without delay and to ensure that no branch withholds or manipulates data. A CIB officer from a private bank, speaking anonymously, confirmed that the directive came with a clear message: no loan defaulter will be permitted to contest the election.

Banks have been told to apply loan-rescheduling rules rigorously, particularly in cases where long-term defaulters attempt to regularise their accounts shortly before submitting nomination papers. The central bank emphasised that there will be no exemptions, concessions, or discretionary leniency, and that reporting must reflect the true position of a borrower’s account.

Importantly, even borrowers who have secured stay orders from the courts must still be reported according to their actual credit status, which may include classification as defaulted. The central bank has reiterated that legal stays do not alter the financial condition of an account for regulatory or electoral purposes.

Institutions that have yet to update or submit default information to the CIB have been warned to do so immediately. Banks must provide monthly updates reflecting the closing balance of all new, ongoing, and restructured loans. Additionally, they are required to maintain detailed, candidate-specific records for electoral verification purposes, including repayment performance, classification status, overdue amounts, the number of missed instalments, and the value of payments already made.

To guarantee smooth communication during the verification period, each bank branch must designate a dedicated officer and share their name and mobile number with Bangladesh Bank.

According to election regulations, any individual whose loan is not in a regular state at least seven days before filing nomination papers will be ruled ineligible to stand. The opposition BNP has already released a list of 237 potential nominees, with at least four reportedly in default.

Governor Ahsan H. Mansur reiterated in a July interview that a stay order does not change the classification of a loan, meaning such accounts will continue to appear as defaulted during background checks.

Data Summary