2014-01-01

Added · Updated

Amendment of Guidelines on Risk Based Capital Adequacy (RBCA) for SMEs

The document amends the December 2010 Guidelines on Risk Based Capital Adequacy to incorporate a Credit Rating Methodology for Small and Medium Enterprises (SMEs) and define claims on SMEs. It establishes specific risk weights for unrated exposures, applying 75% for small enterprise exposures between BDT 10,000 and BDT 3,000,000, and 100% for unrated small enterprise exposures of BDT 3,000,000 and above as well as for unrated medium enterprise clients. The amendments also update the mapping of external credit rating agencies to Bangladesh Bank rating grades and introduce a new table assigning risk weights based on SME rating grades ranging from 20% for SME 1 to 150% for SME 6.

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