Regulatory Alerts2026-06-29
Added · Updated
BRPD-1 Circular Letter No. 22: Regarding the Intermediation Spread Between the Weighted Average Interest Rate of Advances and Deposits
The Banking Regulation and Policy Department of Bangladesh Bank mandates that all banks calculate the intermediation spread using the formula {SMART + Specified Margin} to ensure accurate reporting of the weighted average interest rates for advances and deposits. This directive supersedes previous circulars and requires banks to report the spread, which must not exceed 4%, to the central bank. The regulation is issued under Sections 29(2)(P) and 45 of the Bank Company Act, 1991, and applies to all banks operating in Bangladesh.
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