Regulatory Alerts2026-03-11
BRPD-1 Circular No. 07: Loan Facility Against Government Bond (Treasury Bond)
Bangladesh Bank directs all scheduled banks to implement specific guidelines for extending overdraft or term loan facilities against Treasury Bonds held under lien. Banks must mark the bonds as lien in the Financial Market Infrastructure system, limit financing to 75 percent of the bond's face value, ensure loan tenure does not exceed the bond's maturity, and prohibit any credit for purchasing Treasury Bonds. Issued under Section 45 of the Bank Company Act, 1991, these directives take immediate effect to standardize collateralized lending practices.
Share