May 29, 2017

Credit by commercial banks comes into question

Leading commercial banks are giving credit to their employees and friends, which are higher than the worth of the properties mortgaged, say Central Bank sources.

Normally, banks only accept outright ownership deeds as security, but for their employees deed declarations are enough.

The credit given thus is declared as assets to the Central Bank, which faces difficulties when preparing asset declarations.

Authorities are investigating such instances and legal action is to be taken against bank managers who give credit in that manner, say government sources.