Regulatory Alerts2026-04-16
Bangladesh Bank Circular No. 10: Loan Facility Against Government Bond (Treasury Bond)
Bangladesh Bank has issued Circular No. 10 to establish mandatory guidelines for lending institutions providing loan facilities against Government Bonds (Treasury Bonds) under the FY scheme. The circular mandates that pledged bonds must be held in the lender's name, limits loan disbursement to 75% of the bond's face value without any adjustments, and explicitly prohibits using bond receipts or vouchers as collateral. These instructions are issued pursuant to Section 41(2)(N) of the Bangladesh Bank Order, 2023, to standardize collateral management and mitigate credit risk.
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