Regulatory Alerts2022-12-19
Added
ACD Circular No. 08: Formulation of Bangladesh Bank Agricultural Development Common Fund (BBADCF)
The document establishes the Bangladesh Bank Agricultural Development Common Fund (BBADCF) to utilize unachieved annual agricultural and rural lending targets from banks. Banks failing to meet these targets must deposit the shortfall amount into the BBADCF, earning 2% interest, and must repay the principal plus interest within 18 months. Allocated funds must be distributed to customers at an 8% interest rate through the bank's own network, with 1% of interest deposited into a Risk Mitigation Fund and disclosed as part of General Reserve, while the remaining 4% interest is transferred to the bank's income. These guidelines apply from the 2022-23 fiscal year and repeal specific previous directives regarding unachieved targets.
Topics
Share