Regulatory Alerts2026-05-14
BRPD-1 Circular Letter No. 18: Single Borrower and Large Loan Exposure Limit
Bangladesh Bank temporarily relaxes single borrower and large loan exposure limits to facilitate international trade finance, raising the aggregate exposure ceiling to 25 percent of capital and reducing the non-funded exposure conversion factor to 25 percent. The reduced conversion factor will gradually increase to 30 percent by December 2027, 40 percent by December 2028, and revert to the standard 50 percent by December 2029, while the 25 percent exposure limit remains valid until June 2028. Additionally, banks must apply a new tiered large loan portfolio ceiling based on their classified loan ratios, capped at 600 percent of capital, until December 2027, after which all original BRPD Circular No. 01/2022 provisions resume.
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