The government is forming Asset Management Company (AMC) under the Ministry of Financial Institution Division empowering it as default loan recovery agency.
Aiming to introduce such company the ministry is enacting a law which enable the AMC to enforce strictly against defaulters in the banking sector.
The proposed AMC will launch drive if any banks fail to recovery it, sources said.
The Ministry of Finance and Bangladesh Bank have finalized a draft law headlined ‘Bangladesh Asset Management Corporation Act, 2021’ for this proposed organization.
“The draft law also gives corporations the opportunity to invest in shares, bonds and debentures or buy mutual funds to keep the stock market stable. The corporation will be able to raise funds for stock market.” Shukur Ali, Joint Secretary and Head of the Committee on forming AMC told Business Mirror.
“ If necessary the AMC will able to sell or lease the concerned business and its property directly,”. A high official said who is involved with the law.
“The proposed company can also take possession of immovable property, change the board of directors, and restructure the all loan of banks,” he said adding that the company will enjoy special power after the central bank to regulate or monitor loan.
The proposed Asset Management Companies will be able to collect defaulted loans that the bank cannot repay. This will reduce the defaulted debt considerably. Asset Management Corporation is being given special powers for this, he said.
“We have reviewed Malaysian, Korean, Vietnamese and Thai law relating loan recovery to make this proposed law. Since 2002, these four countries have been successful in recovered default debt n their countries through such Asset Management Act. ”
Shukur Ali said the required money would be collected from the capital market by issuing initial public offerings and releasing bonds .
The Asset Management Company will sign an agreement with the state owned commercial bank soon after the act is approved. as they are tried to recovery of default loans of banks.
