LARGE LOAN AND

CREDIT INFORMATION
BUREAU (CIB)
 CIB
An organization Of a third-party service
provider for the financial sector that:

Identify data about Consumer (Individual) and

Commercial (Business) entities, Credit
Information, Payment History

Compiles Credit Information Reports on

consumer and commercial borrowers and
makes these available to members on request.
 Observation of CIB
According to the Observation of CIB, branches of the banks were
directed to collect from January 01, 1993 onwards, before taking
effective steps on fresh loan-application of any borrower after
receipt of the same or before renewal of regular loan account or
rescheduling, whether he has availed of any loan-facility from
any other bank and if he has, the required information on that
loan from the Credit Information Bureau through their Head
Offices.

But it has been observed that many banks are conducting the
process of sanction, renewal and rescheduling of loan without
collecting information on loans from the Credit Information
Bureau. Consequently, the defaulters are availing of the
opportunities of obtaining fresh loan without repaying the
defaulted one, which is undesirable.
 Circulation of CIB
From now on the circulation is made compulsory to obtain
information on borrower from the Credit Information
Bureau before sanctioning of fresh loan, renewal of regular
loan or rescheduling of loan favor of any borrower.

Further included in the same Circular is that it must have

to be ensured that no loan facility shall be extended to any
defaulters and for this purpose banks at their own interest
shall collect credit information from the CIB.
 Function of CIB
Following procedures of functions are instructed to be complied
with in respect of sanction, renewal and rescheduling of large
loan:

Credit information on borrower shall have to be collected from

the Credit Information Bureau before sanctioning of fresh loan,
renewal of regular loan or rescheduling of loan for Tk. 5031 lacs
and above.

Banks shall take the decision of sanctioning, renewing or

rescheduling the loan at their own discretion and responsibility
having examined the eligibility of the borrower in respect of
availing of the loan after receiving the total information on the
borrower from the Credit Information Bureau.