BRPD Circular Letter No. 03: Loan Classification and Provisioning

Banks in Bangladesh must maintain a general provision of 1% on unclassified amounts for loans to Brokerage Houses, Merchant Banks, and Stock Dealers, reducing the previous requirement of 2%. This directive amends the rules set out in BRPD Circular No. 14 dated 23 September 2012. The requirement applies to all Scheduled Banks in Bangladesh and comes into force from 30th March, 2023.

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Bangladesh Bank
Head Office
Motijheel, Dhaka-1000
Bangladesh website: www.bb.org.bd Banking Regulation and Policy Department 02 February 2023 BRPD Circular Letter No. 03 Date: --------------------- 19 Magh 1429 Managing Director/Chief Executives All Scheduled Banks in Bangladesh. Dear Sir, Loan Classification and Provisioning Please refer to BRPD Circular No.14, dated 23 September 2012 on the captioned subject.
2. According to the section 4(a)(3) of the above mentioned circular, banks were advised to maintain
2% general provision on the unclassified amount for loans to Brokerage House, Merchant Banks and Stock Dealers.
3. Now it has been decided that banks will have to maintain a general provision of 1% on
unclassified amounts for loans to Brokerage House, Merchant Banks and Stock Dealers.
4. 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.
This circular will come into force from 30th March, 2023.
Yours faithfully,

(Maksuda Begum)
Director (BRPD)
Phone: 9530252

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Lineage: In force

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Source: Bangladesh Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works