Guidelines on CIBGUIDELINES ON CIB Credit Risk Management January, 2009 Page 1 of 4 insurance companies and CIP (Commercially Important Person) status. Having realization of the fact and to bring discipline.00 crore and above) and quarterly (outstanding loan of Tk. Process Flow of CIB Report Relationship Manager CIB Department of the Bank Bangladesh Bank Collect & verify the CIB Undertakings from the Customers. Prepare Monthly & Quarterly CIB Report for reporting to Bangladesh Bank.00 crore) basis and financial institutions (outstanding loan of Tk. Government of Bangladesh and others.Guidelines on CIB Introduction : To ensure the credit discipline and to maintain the customer’s CIB data base henceforth the Management of the Bank has set up a centralized CIB Unit. Manage the data banks and provide CIB reports to the Banks/Financial Institutions upon request. 50 thousand to below Tk. Data so collected are made available on request to banks/financial institutions. In order to enable the banks and financial institutions to ascertain the loan status of the borrowers/owners fully automated Credit Information Bureau was established in 1992 to collect all credit related information in respect of each borrower/owner. Page 2 of 4 . objections. This report helps the banker’s/lenders for credit appraisal. Receive.1. Duly filled the CIB Undertakings & Enquiry Forms and send the same to CIB Unit of Head Office.1. The major function of CIB is to provide credit information to the Bank’s/Financial institutions to know the credit status of their prospective customers. float shares in the capital market. Collect CIB Reports. risk assessment and finally make the decisions for lending with a prudent manner.50 thousand and above) on half yearly basis. Letters and distribute the same to the concern division/business units. and qualify for directorship of banks /financial institutions. Under the existing laws the banks and financial institutions are not permitted to extend new credit facilities or renew existing credit facilities to defaulting borrowers. the Bank is introducing guidelines for all the concerns to expedite the CIB Department and to ensure credit discipline of the Bank. In the process CIB department of Bangladesh Bank has collects data from banks on monthly (outstanding loan of Tk. scrutinize and prepare CIB Inquiry forms and send the same to Bangladesh Bank. The defaulters are not also allowed to participate in parliamentary election. 9.Guidelines on CIB Instructions for CIB: 1. 14. A separate CIB unit in Retail Finance Center (RFC) will process CIB related functions for retail clients. For Large Loan. renewal or enhancement of any credit facility. 13 dated October 26. 3. CIB Report must not be older than 90 (Ninety) days. 11. For other Risk-B Facilities (other than large loan). They will arrange for sending the CIB Inquiry Forms along with undertakings from concerned customers duly filled in to the CIB Unit of CAD and RFC. CIB report to be obtained at the time of fresh approval or renewal of facilities but CIB Report must be 180 (one hundred eighty) days current. 8. 5. 7.. 12. Every Risk Managers of CRM will have to keep a copy of CIB report in the concern customers file for their ready reference. For One Time facilities. 15. Concern Credit personnel have to visit the site for knowing the CIB stats of their clients. like LC. The register may contain borrower name. 6. sending and receiving date. 13. CIB Report must be 60 (sixty) days current on the date of approval. Page 3 of 4 . CIB Report need to be obtained at the time of sanction. RFC will send CIB request and collect CIB for retail Banking. RFC will maintain separate CIB register in the RFC web link. 4. Relationship Managers will verify all information in the CIB declaration given by customers. As per BRPD Circular No. 2000. 2. Credit proposal will not be processed in CRM without obtaining Clean and valid CIB Report from Bangladesh Bank. validity and status of the received CIB report etc clearly. CIB Report must be 90 (ninety) days current on date of approval. CIB Unit of CAD will re-circulate the circulars and instructions issued by Bangladesh Bank regarding CIB. After collecting the CIB report from BB CIB unit of CAD will distribute the copies of CIB reports to CRM (Corporate and SME) and concern business units. Funded or Non-Funded and irrespective of any amount. division. For Risk-A (100% cash covered) Facilities. CIB Report is mandatory for any Credit facility. CIB Unit of CAD will take the initiatives for necessary correction of CIB Database maintained with Bangladesh Bank. CIB Unit of CAD will update the CIB register on daily basis in the CRM web site. In compliance of the said Circular. Time Loan (PO) etc. LG. Monthly and Quarterly CIB statements will have to prepare by CIB Unit of CAD for submission to Bangladesh Bank as per their guidelines. CIB Unit of Credit Administration Division (CAD) will process CIB related functions for Corporate and SME clients only. CIB requests and reports should not pile up for a single day. 10. CIB Unit of CAD will have to report to the Credit Administration Department (CAD) and CIB unit of RFC will have to report to Retail Finance Division. CIB units will send all the CIB requests to BB and collect the CIB report from BB by daily basis. In case the CIB report in respect of the borrower is found adverse. instead of handing over the CIB report itself or an extract thereof. No one is entitled to handed over it or the credit information contained in the CIB report is partly or fully disclosed (vide letter) to the clients.” Unquote: CIB Circular # 03. Dated November 17. 2004 Quote: “The Bank or Financial Institution acknowledges and accepts that if it provides any information which is false. costs shall be assessed by Bangladesh Bank and shall be paid by the Bank and Financial Institution forthwith upon being claimed by the Bangladesh Bank. loss. charges. Dated November 17." 18.Guidelines on CIB 16. expenses. expenses. 2004 Page 4 of 4 . and damages. The indemnity for any such claims. in a confidential letter using the language prescribed by Bangladesh Bank as under: "According to credit information available with us. 17. the Bank or Financial Institution shall indemnify and hold harmless Bangladesh Bank in respect of any claims. You may approach your current lending institution(s) to regularize the position with them. The concerned RMs and CIB Units will follow the Bangladesh Bank’s statement on misleading information very meticulously. loss and damages.” Unquote: CIB Circular # 03. you are identified to be in default in your account(s) with one or more lending institution(s). costs howsoever caused or incurred to Bangladesh Bank as a result of publication of the information provided by the Bank or Financial Institution concerned. CIB Units of the Bank may inform the client or prospective client in writing. misleading or incorrect in any material particular it shall also be liable to compensate any person who is affected by such false or misleading or incorrect information in accordance with law. charges. misleading or incorrect in any material particular. Quote: “In the event that the information provided by the Bank and Financial Institution is subsequently found or established to be false. CIB report is confidential and used for official purpose only.