BRPD Circular Letter No. 08: Prior approval from regulatory authorities and compliance of related rules and regulations for financing residential/commercial building or structure, land development and for purchasing building/apartment/floor space by banks

Ref No: BRPD/Reg/Policy/08 Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka.

Managing Director / Chief Executive Officer All Scheduled Banks Operating in Bangladesh

Dear Sir,

Subject: Obtaining Prior Approval from Regulatory Authorities and Compliance with Relevant Rules and Regulations for Financing Residential/Commercial Building or Structure Construction, Land Development, and Purchase of Building/Apartment/Floor Space.

Attention is drawn to the subject matter to inform you that for bank authorizations (loans, investments, leases, etc.) for the purpose of constructing any residential/commercial building/structure, land development, and purchasing buildings/apartments/floor space:

a) It must be ensured that the following laws and regulations are properly complied with:

1. The Building Construction Act, 1952;
2. The National Building Code, 2006;
3. The Bangladesh Environment Conservation Act, 1995;
4. The Environment Conservation Rules, 1997;
5. The Fire Prevention and Suppression Act, 2003;
6. The Private Residential Project Land Development Rules, 2004;
7. All other applicable laws and rules.

b) It must be ensured that appropriate approvals are obtained from the National Housing Authority / Capital Development Authority / Chittagong Development Authority / Khulna Development Authority / Rajshahi Development Authority / City Corporation / Municipal Corporation, as applicable.

2. In cases where authorizations have already been executed for buildings/structures under construction, it must be ensured that proper compliance with the aforementioned laws and rules and proper approval from regulatory bodies are maintained.

3. The aforementioned laws and rules must be properly complied with and proper approvals obtained from regulatory bodies in the case of banks' own building/structure construction and purchase/lease, as well as for buildings/structures already constructed and purchased/leased properties. In this regard, all banks are required to submit a compliance report to this department by June 30, 2013.

These instructions will take effect immediately.

Yours faithfully,

(Md. Anowarul Islam) Deputy General Manager Phone No: 9530094

BRPD Circular Letter No: 08 April 28, 2013 Date: --------------------- Baisakh 15, 1420