BRPD Circular Letter No. 09: Policy regarding establishments of business center by Banks

Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka.

BRPD Circular Letter No. 09 11 Sraban 1423 Date: ----------------- 26 July 2016

Managing Director / Chief Executive All Scheduled Banks operating in Bangladesh.

Dear Sir,

Policy regarding establishments of business centers by Banks.

We draw your attention to BRPD Circular Letter No. 09, dated 30 July 2012; BRPD Circular No. 18, dated 29 November 2012; BRPD Circular Letter No. 02, dated 16 January 2014; and BRPD Circular Letter No. 12, dated 2 June 2014.

2. Various policies regarding the establishment of business centers by banks have been issued from time to time through separate circulars and circular letters. Now, considering the facility of long-term lease/rental agreements for building/floor space, the scope and extent of banking business, the number of customers, and the increase in own capital/manpower, a decision has been taken to amend the policy in this regard.

3. BRPD Circular Letter No. 9/2012 had given instructions regarding the lease/rental of building and floor space for a period of 10 years among other instructions. Now, considering cost savings and other facilities in the case of concluding long-term contracts, it has been decided that banks may lease/rent building/floor space for a maximum period of 20 (twenty) years.

4. Paragraph 1(g)(3) of BRPD Circular No. 18/2012 shall be replaced as follows:

"Branches established in all metropolitan areas/city corporations and 'A' class municipalities shall be considered as 'City Branches', and branches established in all 'B' and 'C' class municipalities and union areas shall be considered as 'Rural Branches'."

5. Among other instructions, BRPD Circular Letter No. 02/2014 provided instructions not to use more than 5,000 (five thousand) square feet of floor space for City Branches and 2,000 (two thousand) square feet for Rural Branches in the case of establishing new branches or relocating existing branches. Now, considering the scope and extent of banking business, the number of customers, and the increase in own capital/manpower, it has been decided that, as needed, banks may lease/rent building/floor space up to a maximum of 6,000 (six thousand) square feet for City Branches and 3,000 (three thousand) square feet for Rural Branches in the case of establishing new bank branches or relocating existing branches.

6. Hereby, BRPD Circular Letter No. 12, dated 2 June 2014, is repealed. Besides, other separate instructions in the aforementioned circulars/circular letters shall remain in force.

This instruction shall come into force immediately.

Yours faithfully,

(Abu Farah Md. Nasir) General Manager Phone: 9530252. DnNo: B: BRPD.Circular.No.09