Bangladesh Bank has approved 131 valuation firms and companies to assess collateral and mortgaged assets submitted against loans from scheduled banks, The Business Standard reported.

The central bank announced the enlistment in a circular issued on September 7 to the managing directors and chief executives of all scheduled banks.

The firms were approved under Bangladesh Bank’s Enlistment Policy for Collateral Valuation Firms or Companies, introduced on November 28, 2023. Of the total, 98 firms have been placed in Group A and 33 in Group B.

Scheduled banks have been advised to use the enlisted firms when valuing collateral offered for existing or prospective loans and to comply with Bangladesh Bank’s valuation guidelines issued from time to time.

The enlistment is valid for three years, with firms required to apply for renewal at least six months before expiry. Bangladesh Bank can, however, revoke an enlistment before the end of the three-year period if a firm breaches the policy’s requirements.

The approved firms must also submit their annual reports to Bangladesh Bank by January 15 each year.