Credit Information Bureau (CIB) was set up in Bangladesh Bank (BB) in the year 1992 with the objective of minimizing the extent of default credit1. CIB of BB collects credit related information of borrowers from banks and financial institutions (FIs) and maintain the information in its database. The banks and FIs can access online database of CIB and collect credit information of its customer, when needed. They use the information to analyze repayment behavior of customer and avoid financing to any defaulter.
Bangladesh Bank Order, 1972 (Chapter IV) and Bank Company Act, 1991 (section 27KaKa) provides legal framework for establishing and functioning of CIB of Bangladesh Bank.
The banks and FIs are the main users of CIB database. In addition, Bangladesh Bank provides information from CIB database to election commission, Bangladesh Securities and Exchange Commission (BSEC), Bangladesh Investment Development Authority (BIDA) etc. on their request.
CIB report contains credit information of a borrower which is confidential. Banks/FIs are not entitled to disclose or transfer any complete credit information of borrowers.
In case the CIB report in respect of the borrower/customer is found adverse, instead of handing over the CIB report itself or an extract thereof, the banks/FIs may inform the client or prospective client in writing, in a confidential letter using the following language:
"According to credit information available with us, you are identified to be in default in your account(s) with one or more lending institution(s). You may approach your current lending institution(s) to regularise the position with them." (CIB Circular 1 dated 08 January 2005).
(CIB Circular 2 dated 04 May 2011 and Para 5.07 of Agricultural & Rural Credit Policy & Program for the FY 2016-17)
As per section 42 (c)(ii) of Bangladesh Bank Order, 1972, credit information includes the nature of security taken from any borrower for credit facilities granted to him. Based on this legal ground, Bangladesh Bank is going to prepare a database of mortgaged land properties.BB moves to prepare database of mortgaged land properties - The Financial Express, Oct 11, 2016