The Bangladesh Bank (BB) has instructed banks to report their lending activities in alignment with firms’ officially registered names. The central bank’s directive aims to increase transparency in loan reporting and ensure that all loans are accurately tracked under the names registered with the Registrar of Joint Stock Companies and Firms (RJSC).

BB noted that some loans were being approved in the names of separate units within companies that produce different goods or services in various regions. This practice has created challenges in tracking whether loans to these units fall under a single company or business group.

A senior BB official explained that the new reporting requirement ensures that loans remain within the 25% single-borrower exposure limit. Reporting under registered names will help banks recognize whether an entity is part of a larger business group or an independent company.

The central bank expects that this measure will improve transparency in lending practices and provide a clearer picture of financial exposures in the banking sector.