The directive, among others, has barred board of directors, chief executives and management-level employees of banks and financial institutions from acquiring any other loan, apart from education, hire purchase and home. It has also asked banks and financial institutions to provision additional 20 percent of the amount on loans backed by third-party collateral.[break]
“In total 35 new provisions were included which were not discussed during the meeting of the working committee, which also includes members of NBA,” a leading banker told Republica on condition of anonymity. “In addition, 18 additional provisions which were discussed in the meetings were later tweaked by the central bank.”
Most of the bankers, however, said they were still going through the content and would make comments on its impact at an appropriate time.
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