BRPD Circular Letter No. 47: Determining Risk Weighted Asset (RWA) in Alternative Investment Sector

Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. Ref No.: BRPD-Circular-47 BRPD Circular Letter No. 47

30 November 2022 Date: ------------------- 15 Agrahayan 1429

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

Dear Sir,

Subject: Determination of Risk Weighted Assets (RWA) for investments in various sectors under the Alternative Investment Sector.

Reference is drawn to your attention to the circular letter No. 18, dated 21 December 2014, issued through BRPD Circular Letter No. 18, regarding the determination of Risk Weighted Assets for investments in various sectors under the Alternative Investment Sector, and BRPD Circular Letter No. 48, dated 29 September 2020.

2. Through BRPD Circular Letter No. 48/2020, instructions were issued to impose a risk weight (RWA) of 100%, instead of the previous 150%, for investments in various sectors under the Alternative Investment Sector (including Private Equity, Impact Fund, etc.) in the interest of the expansion of the Alternative Investment Sector in Bangladesh and the development of the Alternative Investment Sector, until 30/09/2022.

3. Now, in the context of the prolonged negative impact of COVID-19 and the continuation of recent wars in the outside world, along with creating opportunities for various innovative initiatives and new enterprises in the country, the time limit for imposing a risk weight of 100% for investments in various sectors under the Alternative Investment Sector (including Private Equity, Impact Fund, etc.) in the interest of the expansion of the Alternative Investment Sector in Bangladesh and the development of the Alternative Investment Sector has been extended until 30/09/2024.

4. This instruction is issued under the powers granted by Section 45 of the Bank Company Act, 1991.

Yours faithfully, (Md. Ali Akbar Farazi) Director (BRPD) Phone: 9530095