BRPD Circular Letter No. 14: Acquisition of Immovable Properties by Banks

Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka.

BRPD Circular Letter No. 14 Shrabon 28, 1420 Date: -------------------- August 12, 2013

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

Dear Sir,

Regarding holding/purchase-sale of immovable/fixed assets by banks.

We draw your attention to Section 10 of the Bank Company Act, 1991, BRPD Circular No. 04 dated January 25, 2010, and BRPD Circular Letter No. 09 dated July 30, 2012, on the subject cited above.

In addition to the instructions issued regarding the holding/purchase-sale of immovable/fixed assets by banks through the aforementioned section of the law and circulars, it is informed that the total amount (book value) of immovable/fixed assets held by a bank shall not exceed 30 percent of the bank's paid-up capital, with the aim of strengthening the liability-asset management of banks.

It is noted that banks whose total amount (book value) of immovable/fixed assets already exceeds 30 percent of the bank's paid-up capital will not be allowed to acquire any new immovable/fixed assets until they increase their paid-up capital proportionally.

This instruction shall take effect immediately.

This instruction is issued in the public interest under Section 45 of the Bank Company Act, 1991.

Kindly acknowledge receipt.

Yours faithfully,

(Md. Anowarul Islam) Deputy General Manager Phone: 9530094 Ext: 267