Maintaining provision against accrued interest on deposit. Ref: BRPD Circular No. 06 dated 14.10.2004.

Maintaining provision against accrued interest on deposit.

Of late it has been observed by Bangladesh Bank while conducting inspection that some banks are not maintaining due provision against liabilities arising from interest accrued on deposits in the Profit and Loss account of the respective accounting year. As a result, true pictures of financial position of the banks are not being reflected in their Balance Sheets.

Under the circumstances, banks are instructed to prepare financial statement by maintaining due provision against accrued interest on deposit i.e. after calculating it on accrual basis.

Please acknowledge receipt.

~~~~~~~~~~

Source: https://www.bb.org.bd/mediaroom/circulars/brpd/oct0604brpd06e.pdf

Leave a Reply

Your email address will not be published. Required fields are marked *