DEFAULT LOAN CULTURE
Contributors: The writer is a Part Time Lecturer of Leading University and the Propritor of Bangla Chemical, Managing Director of Hydro Machines Limited, Managing Director of Meet Bangladesh Ltd, Senior Vice President of  Bangladesh Indenting Agents' Association
Published: August 01, 2008
Place of publication: Dhaka
Work titles: Mohammad Hasibur Rahman [BBA, MBA (doing) from LU] is a assistant of above honorable writer
Description: The book “Default Loan Culture” is based on study or Research Paper of M S Siddiqui, a Lecturer of Leading University, Dhaka Campus and a businessman is working with a different approach. The book has visible sign of experience of a businessman and research of a teacher.  It is a first ever research on Management of Non Performing Loan in Bangladesh. Most of the research in Bangladesh to find the reasons of Default Loan and conclude by suggesting a simple solution of recovering default loan by enacting more strong law.

The finding of study that there is no law for proper utilization of Non Performing Loan (NPL) of Bank and management process of NPL like other countries. 

All the laws and rules are related to recovery of loan has been evaluated with reference to laws and rules of other countries.

There are many alternate dispute solution processes in other countries and writer suggested some dispute solution process for Bangladesh. Loan recovery and Management of NPL, both should be go side by side for proper utilization of over Tk 23,000 cr creating employment  and contribution to GDP. 

There are some suggestions of Alternate dispute solution like Banking Ombudsman and formation of Asset Management Company.

The book has references of many good decisions of past but the question may arises why those decisions were not implemented. There were a number of commissions to find the reasons of default loan and recommendation of some way out of the problem. Those are seems in the file of the different departments of the Government. They writer has given due reference to those papers and those should be implemented immediately.  

The book starts with history of Small and Medium Enterprises and history of Industrialization from British period. The writer has analysis of Import policy and evaluated the five year plans of Bangladesh since 1972 particularly the policy and guide line of Industrialization of Bangladesh.

The book more on solution of Default loan rather than trying to find the reason of default. We need immediate solution of problem not only blaming some one for the crisis. 

The book forwarded by noted economist Dr Abul Barkat, Professor of Dhaka University of Economic Department. According to him the study provides an analysis in to various high utility dimensions pertaining the Industrial Sickness of SMEs. The author’s treatment of the subject is logically well-knitted. The recommendations forwarded towards rehabilitation of sick industries in both Bangladesh and India should of high interest to the relevant policy makers. The experience of both China and Japan towards changing pertinent laws to address sick industries should also be treated as positive learning issues. 

The import part of the study is classification of defaulters to solve the issue has been evaluated nicely and need to note by our policy makers. The writer has shown courage to tell some of the truth about different decisions un-implemented, weakness of existing laws and eye opening suggestions to solve the issue.

The cover looks attractive and printing quality seems reasonably acceptable with some printing mistakes. 

The relevant authority and researcher will find new dimension of the issue in the book.
This is an eye opener for Policy makers in Bangladesh to understand why we cannot overcome the problem. 

The price of the book is Tk 200 for pages about 150 pages but worthy considering many new information and study. The available in some book stall in the country and also with writer at 15 New Baily Road, Dhaka-1000.Mobile: +8801711469971, T & T 9346780-81

We expect wide circulation of the book.


Table of Contents:

Chapter-One

1. Introduction
1.1 -Sickness:

1.2 -Why Bank loan?

1.3 -Background of Bangladesh Economy:

Chapter-Two

2.1-The Industrial Sector

2.2-Government plan and policies for Industrialization:-

2.3- First Five years plan:-

2.3.1- Development of Capital Goods Sector:

2.3.2 -Small Industries:

2.3.3- Rural and Cottage Industries:

2.3.4- Export Oriented Industries:

2.3.5-Strategy for Increasing Industrial Output

2.3.5.1- Nationalized Sector:

2.3.5.2 -Private Sector:

2.3.5.3- Foreign Investment:

2.3.5.4- Geographical Dispersal:

2.3.5.5-Choice of Technology:

2.3.5.6-Increased Capacity Utilizations:

2.3.5.7-Growth through Linkages:

2.4-Second Five year plan

2.4.1-Objectives and Strategies of the Plan

2.4.1.1-Objectives:

2.4.1.2-Industrial Development Strategy:

2.5-Third Five Year Plan

2.5.1-Strategies:

2.6 Fourth Five Year Plan: Objectives of Industrialization:

2.6.1- Strategies and Policies:

2.7-The Fifth Five-Year Plan: Objectives and Strategies for Industrialization:

2.8- The Industrial Policy 1991:

2.9- The Industrial Policy 1999:

Chapter-Three

3. Industrial Sickness:

3.1-Concept of Sickness:

3.2- Chronology of Industrial Sickness:

3.3- Sickness Industries:

3.4- Definition of Sick Industry:

3.5- Factors of Sickness:

3.6- Industrial Sickness:

3.6.1- Bangladesh

3.6.2- Statistics:

3.7 -Reason of Sickness:

3.8. Reason of Sickness in Bangladesh:

3.8.1 Causes of Industrial sickness: A Study of BIDS

3.8.2. Symptoms and Factors:

3.8.2.1 Symptoms:

3.8.2.2- Internal Factors:

3.8.2.3 External Causes:

3.9. Constraints Faced in Production Cycle:

3.9.1-Implementation:

3.9.2- Production:

3.9.3- Personnel and Labor Relations:

3.9.4-Test of Hypotheses:

3.9.5- Findings of Sick Industries Cell, Government of Bangladesh:

Chapter-Four

4. Sickness and Remedy in others Countries:

4.1- Some recommendations to rehabilitate the Sick Industries.

4.2- Study in India to Measures to Control Sickness

4.3-Navak Committee:

4.4-Goswami Committee

4.5-Kapur Committee:-

4.6. Various Steps taken by Indian Government to Control the Sickness in SSIs:-

4.7 -Steps Taken in Ninth Five-Year Plan

4.8- Other steps:

4.9-Delayed payments:-

4.10- Rehabilitation of sick units:

4.11 Change of Laws:

4.11.1 The Recovery of Debts due to Banks and Financial Institutions Act 1993.

4.11.2-Securitization and Reconstruction of Financial Assets and

Enforcement of Security Interest Act 2002:-

4.11.3- Companies (Amendment) (Second Amendment) Act 2002:

4.11.4-Japanese policy:

4.11.5-Chinese experience:-

Chapter-Five

5. Sick Industry to Default Loan to Loan Defaulter:-

5.1-Classification of Defaulters:-

5.2- Classification of Defaulters in India:

5.2.1- Guidelines issued on willful defaulters (May 30, 2002)

5.3- Definition of willful default:

5.4 -Diversion and siphoning of funds:

5.5- Cut-off limits:

5.6- End-use of Funds:

5.7- Penal measures:

5.8- Guarantees furnished by group companies:-

5.9- Role of auditors:-

5.9.1- Role of Internal Audit / Inspection:-
5.9.2- Reporting to RBI / CIBIL:-

5.10- Grievances Redressal Mechanism:-

Chapter-Six

6. Criminal Action against Willful Defaulters:-

6.1- J.P.C.Recommendations:-

6.2 Monitoring of End Use

6.3- Criminal Action by Banks / FIs
6.4- Reporting names of Directors:-

6.4.1- Need for Ensuring Accuracy:

6.4.2- Position regarding Independent and Nominee directors:-

6.4.3- Government Undertakings:-

Chapter- Seven

7. - Recovery policy in Bangladesh and Others Country:-

7.1- Mediation in Bangladesh:

7.2 Recovery policy In India:

7.3- Alternate dispute solution method in India:-

7.4- Banking Ombudsman:-

7.5 Ombudsman for Bangladesh:-

7.6 Asset Management Company:-

Chapter-Eight

8. Policy for Sick Industries:

8.1- Intervention of PM:-

8.2- Sick Industries Rehabilitation Cell:-

8.3- Review Committee:-

8.4- Budgetary allocation:-

8.5- Action of Caretaker Government:-

Chapter-Nine

9. Conclusion:-

9.1- Recommendations of study:-
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