BRPD Circular Letter No. 39: Single Borrower and Large Loan Exposure Limit

Paragraph 3(A) of BRPD Circular No. 01 dated 16 January 2022 is replaced to exempt credit facilities provided to the government, against government guarantees, or against guarantees from Multilateral Development Banks or Export Credit Agencies with AAA ratings from the restrictions set forth in Paragraph 2. This exemption applies to all scheduled banks in Bangladesh. All other instructions from the aforementioned circular remain unchanged. The directive comes into force immediately.

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Bangladesh Bank
Head Office
Motijheel, Dhaka-1000
Bangladesh website: www.bb.org.bd
Banking Regulation &
Policy Department

11 October 2022
BRPD Circular Letter No. 39 Date: ------------------------ 26 Ashwin 1429 Managing Director/Chief Executives All Scheduled Banks in Bangladesh. Dear Sir, Single Borrower and Large Loan Exposure Limit Please refer to BRPD Circular No. 01 dated 16 January 2022 on the captioned subject.
2) The circular had been issued with a view to strengthening credit risk management of banks by
limiting concentrated exposures and thereby further improving the stability of banking sector. Now in order to support industrial growth by ensuring competitive financing, Paragraph 3(A) of the circular will be replaced as below:
“In case of credit facilities (a) provided to the government or against government guarantees and (b) against guarantees provided by Multilateral Development Bank (MDB) or Export Credit Agency (ECA) having AAA rating, the aforementioned restrictions set forth in Paragraph 2 shall not be applicable.”
3) All other instructions provided vide the aforementioned circular will remain unchanged.
4) This directive has been issued by Bangladesh Bank in exercise of its power conferred on it
under Sections–26(Kha) and 45 of the Bank Company Act, 1991, as amended. This circular will come into force immediately. Yours faithfully,

(Maksuda Begum)
Director (BRPD)
Phone: 9530252

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Lineage: In force

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This document amends: BRPD Circular No. 01: Single Borrower and Large Loan Exposure Limit

Source: Bangladesh Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works