The Bangladesh Bank has restricted the National Bank Ltd (NBL) from issuing loans amounting to more than Tk10 crore.

A central bank letter sent to the bank on Sunday stated that the initiative has been taken to protect depositors and ensure proper implementation of a MoU previously signed between the regulator and NBL, making it mandatory for the bank to be in good financial health.

The letter added that the central bank’s prior approval is now mandatory if the bank wants to issue loans over Tk10 crore.