BRPD Circular Letter No. 09: Purchase of Fixed Assets by Banks

Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka.

website: www.bb.org.bd

BRPD Circular Letter No. 09/2012

Date: 15 Sraban, 1419 30 July, 2012

Chief Executive Officers All Scheduled Banks operating in Bangladesh.

Dear Sir,

Purchase of Fixed Assets by Banks.

Reference is invited to BRPD Circular No. 04, dated 25 January 2010, regarding the purchase and sale of fixed assets by banks.

It has been decided that banks shall not purchase or lease land, buildings, or floor space for periods of 10 (ten) years and above for any purpose other than their own head office use. However, banks may purchase or lease floor space for bank branches in areas under the jurisdiction of City Corporations. In the case of purchase/lease of such land, buildings, or floor space for banks, applications for prior approval from Bangladesh Bank must be made along with the specified schedule (Annexure-A) and copies of the Board of Directors' resolutions.

This directive shall come into effect immediately.

Yours faithfully,

(Md. Anowarul Islam) Deputy General Manager Phone: 9530094

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Annexure - "A"

Required information regarding the purchase/lease of fixed assets by banks.

1. Name of the Bank/Company:

2. Schedule of Land, Building, or Floor Space: (Detailed address)

3. Quantity/Area of Land, Building, or Floor Space:

4. Value of Land, Building, or Floor Space: (Value per Katha/Percent for land and Value per square foot for floor space)

5. Regarding Land, Building, or Floor Space: Is any Director of the Bank associated with the ownership? If yes, detailed description:

6. Purpose of purchasing Land, Building, or Floor Space:

7. Currently purchased/held by the Bank: Address and quantity of assets

8. Other information (if any):

(Signature, Name, Seal of the Chief Executive Officer)