The third tripartite review meeting of Bangladesh Bank (BB), Association of Bankers Bangladesh (ABB) and Bangladesh International Arbitration Centre (BIAC) on the draft of ADR guidelines to resolve commercial disputes including Non Performing Loans (NPL) was held.
BIAC Mr. Muhammad A. (Rumee) Ali, CEO of BIAC presided over the meeting, said a press release on Monday.
The draft ADR guideline, as it stands, after incorporating recommendations made by the committee members was discussed in details.
It was agreed that incorporating the ADR (Mediation-Arbitration or Med-Arb) clause in all bank contracts will provide banks with a tool to protect themselves from the risk of non-performance of contracts.
The clause will be framed in a manner that will give the banks an additional safeguard against the risk of default in loan contracts.