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Discipline: Investment
Subject: CIB
Category: General
Level: Basic
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Basic Understandings of CIB

1. Background

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.

2. Legal Basis

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.

3. Benefit/Uses/Necessity of CIB Report

  • As per section 27KaKa of Bank Company Act, 1991, no bank or financial institution can extend any credit facility favoring a defaulter. To comply with the above requirement, banks collect information from CIB to ascertain default status of a customer (BRPD Circular 13, 2000).
  • Information from CIB to be collected 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. (CIB Circular 02, 1992 and CIB Circular 7, 1995).
  • CIB Report is required even before allowing non-funded facilities like LC, bank guarantee (BRPD Circular 13, 2000).
  • CIB report provides information on the status of existing credit facility and repayment behavior of a customer even he/she does not have any default credit.
  • CIB Report should be collected though the customer provides 100% or more cash security against a facility. In fact, credit facility cannot be provided to a defaulter even if 100% or more cash margin is provided. As such, to avoid financing to a defaulter, CIB report should be obtained in such cases also.

4. Users of CIB

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.

5. Confidentiality of CIB Report:

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).

6. Exemption from Reporting to CIB and collecting CIB Report:

  1. The bank/FIs are not required to report credit/investment information of a customer to CIB database of Bangladesh Bank, if the customer has outstanding liability
    • less than Tk. 10,000- if it is a credit card customer
    • less than or equal to Tk. 250,000-if short-term agricultural investment/loan is allowed for crop cultivation
    • less than Tk. 50,000 – if it is other than above two types of customer
  2. CIB Report is not required for short-term agricultural credit/investment amounting to a maximum of Tk. 250,000 for the purpose of crop cultivation only. However, Bank/ FIs must ensure that the credit facility is not given to a defaulter.

(CIB Circular 2 dated 04 May 2011 and Para 5.07 of Agricultural & Rural Credit Policy & Program for the FY 2016-17)

7. Food for Thought:

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
1 In this writing, credit/loan is meant for both credit/loan of conventional banks and investment of shariah-basesd banks.


CIB Circular 2 dated 27 December 1992
CIB Circular 7 dated 16 June 1995
CIB Circular 13 dated 26 October 2000
CIB Circular 1 dated 08 January 2005
CIB Circular 2 dated 04 May 2011
CIB Manual, 2011
CIB Policy (Draft), 2015
para 5.07 of Agricultural & Rural Credit Policy & Program for the FY 2017-18
BB Order, 1972
Section 27KaKa of Bank Company Act, 1991
BB moves to prepare database of mortgaged land properties - The Financial Express, Oct 11, 2016

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