Regulatory Alerts2022-07-26
Added
BRPD Circular Letter No. 28: Saving/Reducing Expense of Energy and Fuel
Scheduled banks operating in Bangladesh are directed to reduce fuel, oil, and lubricant expenses by 20% and electricity expenses by 25% over the period from July 2022 to June 2023, with a 10% reduction required for the remaining six months of 2022 and another 10% for the first six months of 2023. Banks must maintain records of these expense reductions at their head offices and provide them to Bangladesh Bank inspectors upon request. The savings cannot be reallocated to other categories, and the incurred expenses must be reflected in the financial statements for the respective periods. These instructions are issued under Section 45 of the Bank Company Act, 1991, and take immediate effect.
Bangladesh Bank Chief Executive Office Motijheel, Dhaka-1000 Bangladesh. Ref No.: BRPD-Regulatory Policy and Guidelines Department BRPD Circular Letter No. 28 26 July 2022 Date: ---------------- 11 Srabon 1429 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh. Dear Sir, Regarding the saving/reduction of electricity and fuel expenses. In the context of the current global economic situation and the decisions taken by the government, you are hereby instructed to ensure strict compliance with the following matters to achieve cost savings and efficient use of electricity and fuel for the remaining 06 months of the calendar year 2022 (July 2022 to December 2022) and the first 06 months of the calendar year 2023 (January 2023 to June 2023):
a) Savings of at least 20% must be achieved from the allocated budget for fuel (petrol, diesel, gas, etc.), oil, and lubricants. To achieve this goal, a 10% reduction must be made in the remaining 06 months of the current year and a 10% reduction in the first 06 months of the calendar year 2023.
b) Savings of 25% must be achieved in the electricity sector. To achieve this goal, expenses must be reduced proportionally in the remaining 06 months of the current year and in the first 06 months of the calendar year 2023.
c) The saved amount shall not be allocated or spent on any other category.
-
In accordance with the instructions in the aforementioned paragraph, banks must preserve data and documents regarding expense reductions at their head offices and provide them to the inspectors of Bangladesh Bank upon request for inspection by the concerned bank inspectors.
-
In the case of the above instructions, the incurred expenses for the period from July 2022 to December 2022 must be reflected in the financial statements of December 2022, and the incurred expenses for the period from January 2023 to June 2023 must be reflected in the financial statements of June 2023.
-
These instructions are issued under the powers conferred by Section 45 of the Bank Company Act, 1991. These instructions shall take immediate effect.
Yours faithfully,
(Maksuda Begum) Director (BRPD) Phone: 9530252