RegAlertRule · BB · 11 Mar 2026
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.
Bangladesh Bank
Head Office
Motijheel, Dhaka-1000
Bangladesh website: www.bb.org.bd
Banking Regulation & Policy Department-1
11 March 2026
BRPD-1 Circular No. 07 Date: ---------------------- 26 Falgun 1432 Managing Director/Chief Executives All Scheduled Banks operating in Bangladesh Dear Sir, Loan Facility Against Government Bond (Treasury Bond) Please refer to BRPD Circular No. 15 dated 27 November 2024 regarding Loan Classification and Provisioning.
2. In reference to the aforementioned circular, it has been learnt that as government bonds under
lien have been listed as eligible collateral, banks have expressed their interest in extending credit facilities to clients against Treasury Bonds held under lien. Accordingly, banks are hereby advised to follow directives regarding disbursement of overdraft or term loan facilities against Treasury Bonds as follows:
a) Prior to extending overdraft or term loan facilities to the borrower, concerned Treasury Bond must be marked as ‘lien’ by the bank in the Financial Market Infrastructure (FMI) system; b) Banks may finance up to 75% of the face value of the bond. However, the outstanding loan shall in no case exceed the face value of the bonds due to applying interest/profit, charges/fee etc.; c) The tenure of the loan facility must not exceed the maturity period of the bond; d) Bank will not provide any form of finance or facility for the purpose of purchasing Treasury Bonds.
3. This directive has been issued by Bangladesh Bank in exercise of its power conferred on it under
section 45 of the Bank Company Act, 1991(Amended up to 2023).
4. This circular will come into force with immediate effect.
Yours faithfully,
(Gazi Md. Mahfuzul Islam)
Director (BRPD)
Phone: 9530252
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“This directive has been issued by Bangladesh Bank in exercise of its power conferred on it under section 45 of the Bank Company Act, 1991(Amended up to 2023).”
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- Refers to
“Scheduled Banks operating in Bangladesh Dear Sir, Loan Facility Against Government Bond (Treasury Bond) Please refer to BRPD Circular No. 15 dated 27 November 2024 regarding Loan Classification and Pr”
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