Guidelines on CIB

GUIDELINES ON CIB

Credit Risk Management

January, 2009
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Guidelines on CIB

Introduction :
To ensure the credit discipline and to maintain the customers CIB data base
henceforth the Management of the Bank has set up a centralized CIB Unit. Having
realization of the fact and to bring discipline, the Bank is introducing guidelines for all
the concerns to expedite the CIB Department and to ensure credit discipline of the
Bank.
The major function of CIB is to provide credit information to the Banks/Financial
institutions to know the credit status of their prospective customers. This report
helps the bankers/lenders for credit appraisal, risk assessment and finally make the
decisions for lending with a prudent manner.
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 defaulters are not also allowed to participate in
parliamentary election, float shares in the capital market, and qualify for directorship
of banks /financial institutions, insurance companies and CIP (Commercially
Important Person) status. 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. In the process CIB department of Bangladesh Bank has
collects data from banks on monthly (outstanding loan of Tk.1.00 crore and above)
and quarterly (outstanding loan of Tk. 50 thousand to below Tk.1.00 crore) basis and
financial institutions (outstanding loan of Tk.50 thousand and above) on half yearly
basis. Data so collected are made available on request to banks/financial institutions,
Government of Bangladesh and others.
Process Flow of CIB Report
Relationship Manager

CIB Department of the

Bank

Bangladesh Bank

Collect
&
verify
the
CIB
Undertakings from the Customers.
Duly filled the CIB Undertakings &
Enquiry Forms and send the same
to CIB Unit of Head Office.

Receive, scrutinize and prepare

CIB Inquiry forms and send the
same to Bangladesh Bank.
Collect CIB Reports, objections,
Letters and distribute the same to
the
concern
division/business
units.
Prepare Monthly & Quarterly CIB
Report for reporting to Bangladesh
Bank.
Manage the data banks and
provide CIB reports to the
Banks/Financial Institutions upon
request.
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Guidelines on CIB

Instructions for CIB:

1. Credit proposal will not be processed in CRM without obtaining Clean and valid CIB
Report from Bangladesh Bank.
2. CIB Unit of Credit Administration Division (CAD) will process CIB related functions for
Corporate and SME clients only. A separate CIB unit in Retail Finance Center (RFC) will
process CIB related functions for retail clients.
3. 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.
4. Relationship Managers will verify all information in the CIB declaration given by customers.
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.
5. As per BRPD Circular No. 13 dated October 26, 2000, CIB Report is mandatory for any
Credit facility, Funded or Non-Funded and irrespective of any amount. In compliance
of the said Circular, CIB Report need to be obtained at the time of sanction, renewal or
enhancement of any credit facility.
6. For Large Loan, CIB Report must be 60 (sixty) days current on the date of approval.
7. For other Risk-B Facilities (other than large loan), CIB Report must be 90 (ninety) days
current on date of approval.
8. For Risk-A (100% cash covered) Facilities, 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.
9. For One Time facilities, like LC, LG, Time Loan (PO) etc., CIB Report must not be older than
90 (Ninety) days.
10. CIB units will send all the CIB requests to BB and collect the CIB report from BB by daily
basis. CIB requests and reports should not pile up for a single day. 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. RFC will send CIB request and collect CIB for retail
Banking.
11. CIB Unit of CAD will re-circulate the circulars and instructions issued by Bangladesh Bank
regarding CIB.
12. Monthly and Quarterly CIB statements will have to prepare by CIB Unit of CAD for
submission to Bangladesh Bank as per their guidelines.
13. CIB Unit of CAD will take the initiatives for necessary correction of CIB Database maintained
with Bangladesh Bank.
14. CIB Unit of CAD will update the CIB register on daily basis in the CRM web site. RFC will
maintain separate CIB register in the RFC web link. The register may contain borrower name,
division, sending and receiving date, validity and status of the received CIB report etc clearly.
Concern Credit personnel have to visit the site for knowing the CIB stats of their clients.
15. Every Risk Managers of CRM will have to keep a copy of CIB report in the concern
customers file for their ready reference.
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Guidelines on CIB

16. CIB report is confidential and used for official purpose only. 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.
17. 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, CIB Units of the Bank may inform the client or
prospective client in writing, in a confidential letter using the language prescribed by
Bangladesh Bank as under:

"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 regularize the position with them."
18. The concerned RMs and CIB Units will follow the Bangladesh Banks statement on
misleading information very meticulously.
Quote:

In the event that the information provided by the Bank and Financial Institution is
subsequently found or established to be false, misleading or incorrect in any material
particular, the Bank or Financial Institution shall indemnify and hold harmless
Bangladesh Bank in respect of any claims, loss and damages, charges, expenses,
costs howsoever caused or incurred to Bangladesh Bank as a result of publication of
the information provided by the Bank or Financial Institution concerned. The
indemnity for any such claims, loss, and damages, charges, expenses, 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.
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, 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.
Unquote:
CIB Circular # 03, Dated November 17, 2004

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