Experts at a roundtable discussion on Tuesday recommended making mediation mandatory for both banks and it's customers before proceeding to court.
They also emphasized the importance of ensuring that mediation awards are enforceable, to guarantee faster case resolution.
Bangladesh International Arbitration Centre (BIAC) organised the roundtable discussion on the implications of Bangladesh Bank's BRPD Circular No. 11, which advises all banks to utilize Alternative Dispute Resolution (ADR) methods, specifically with the assistance of BIAC, to recover bad debts.
The discussion took place at the BIAC office in the capital,bringing together key stakeholders, including senior officials from various banks, legal experts, and financial analysts.
Muhammad A. (Rumee) Ali, Vice Chairman of BIAC, delivered the opening remarks, highlighting the importance of the BRPD Circular No. 11, issued on May 12, 2024. The circular encourages banks to seek BIAC's assistance in recovering non-performing loans (NPLs).
He explained that BIAC has its own Mediation Rules 2019 and Arbitration Rules 2019, which establish a time frame of 3 months to 388 days for case resolution.
He further emphasized that BIAC has a distinguished panel of arbitrators, including eminent former chief justices, renowned advocates, and jurists from both local and international backgrounds.
Special Guest, Mohammed Forrukh Rahman, Barrister-at-Law, Advocate, Supreme Court of Bangladesh shared his experiences of resolving cases using ADR within just six months, with many already in the execution stage.
Shafayat Ullah, Barrister-at-Law, Unit Head MTB Group Legal Affairs Division, Mutual Trust Bank PLC moderated the event while Ummay Habiba Sharmin, Head of Legal, City Bank PLC and Rafat Ahmed Pavel, Head of Legal Operations, IFIC Bank PLC shared their insights as speakers.
