IBFB Holds Roundtable on Special Exit Facility for Classified Loans Stakeholders Stress Need for Consultation Before Major Regulatory Circular
The International Business Forum of Bangladesh (IBFB) today organized a roundtable discussion on “Special Exit Facility for Classified Loans: Balancing NPL Recovery, Business Sustainability, and Credit Discipline” at the IBFB conference room, Dhaka.
Dr. Shah Md. Ahsan Habib, Professor, Bangladesh Institute of Bank Management (BIBM), presented the keynote paper, highlighting key aspects of the proposed exit facility and the need to balance NPL recovery, business sustainability and credit discipline. Ms. Lutfunnisa Saudia Khan, President, IBFB, delivered the opening remarks, stressing the importance of constructive dialogue among policymakers, banks, businesses and other stakeholders.
The discussion was attended by distinguished representatives, including Syed Abu Naser Bukhtear Ahmed, Chairman, Agrani Bank PLC; Dr. Md. Ezazul Islam, DG, BIBM, Kazi Mahmood Sattar, Chairman, IDLC, Mr. Ali Reza Iftekhar, Adviser, Bank Asia PLC, Mohammad Jamal Uddin Mazumder, Additional Managing Director, Islami Bank Bangladesh PLC; Mohammad Firoz Alam, CRO, City Bank PLC, Rizwan Dawood Shams, Managing Director, IPDC Finance PLC; Dr. M Abu Eusuf, Economist & Professor, Department of Development Studies, DU, Dr. Md. Shahidul Islam Zahid, Professor & Chairman, Department of Banking, University of Dhaka, Prof. Md. Mamun Habib, Ph.D, Professor, IUB, Mr. Humayun Rashid, MD & CEO, Energypac Power Generation Ltd, Mr. Mohammad Hatem, President, BKMEA, Mr. Saumitra Kumar Mutsuddi, Head of BSRM; and Mr. Khadem Mahmud Yusuf, Managing Director and CEO, Bangladesh Petrochemical Company Limited (BPCL), Engr. Utpal Kumar Das, Managing Director, Protec Electronics Ltd., along with bankers, business leaders and IBFB members.
During the open discussion, Prof. Md. Mamun Habib emphasized the importance of good governance and fair practices. Prof. Dr. Abu Yusuf of the University of Dhaka raised the issue of enforcement in cases of loan non-repayment, while a representative of Pubali Bank PLC referred to the Money-lending Act, 1832, and stressed the need for reasonable rescheduling. Dr. Toufic Ahmad Choudhury, Former DG, BIBM, Economist and Banker told that political commitment of the govt is necessary for recovery of classified loans, He also told about willful and unwilful defaulter and case by case study. Md. Khairul Anam Mohiuddin, Executive Vice President, Southeast Bank PLC, and Syed Abu Naser Bukhtear Ahmed shared views on loan recovery and institutional coordination and also emphasized on Bangladesh bank, Ministry of Finance with the stakeholders. Mr. Ali Reza Iftekhar, Adviser, Bank Asia PLC, stressed the importance of consulting stakeholders before issuing such a major circular.
Participants broadly agreed that wider consultation with relevant stakeholders—including banks, businesses and other concerned parties—would help identify practical challenges and facilitate more effective implementation of major regulatory measures. They also emphasized the need to balance NPL recovery and repayment capacity with business sustainability, transparency and credit discipline.
The roundtable concluded with a call for continued dialogue among Bangladesh Bank, financial institutions, businesses and other stakeholders to develop practical and sustainable approaches to the country’s NPL challenges.
