, Aug. 20 -- Bangladesh Bank has relaxed its Internal Credit Risk Rating System (ICRRS) guidelines for banks, allowing them to approve, renew, or adjust loans for borrowers with an "unacceptable" credit rating.

The directive, issued on Tuesday, by the Department of Banking Regulation and Policy (BRPD) of Bangladesh Bank is intended to ensure a continuous flow of necessary credit and investment facilities from the banking sector, said a circular by the BB.

"Unacceptable" credit rating implies that borrowers failed to repay loan or missed their installments or failed fulfill the conditions given by the banks.

The directive to relax the ICRRS comes amidst rising interest rate and geopolitical tension that slowed down economic activities. ...