BRPD Circular Letter No. 48: Determination of risk weight against investments in different forms of Alternative Investment

Ref: BRPD Circular Letter No. 48
Banking Regulation and Policy Department
Bangladesh Bank
Head Office
Dhaka.
29 September, 2020

BRPD Circular Letter No. 48 Date: ----------------- 14 Ashwin, 1427 Bangla 23, 2019

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

Dear Sir,

Context: Determination of risk weight against investments in different sectors under the Alternative Investment Guidelines.

Reference is drawn to your attention to the "Guidelines on Risk Weighting of Alternative Investment Funds" (hereinafter referred to as "Guidelines") issued through BRPD Circular No. 18, dated 21 December, 2014.

2. Under Clause 7 of the aforementioned Guidelines: "Risk Weighting of Alternative Investment Funds", paragraph No. 2, instructions were given to impose a 150% risk weight against investments in specific Alternative Investment Funds. Now, in the interest of the expansion of the Alternative Investment sector in Bangladesh, a risk weight of 100% has been determined for investments in all sectors covered under the Alternative Investment Guidelines (including Private Equity, Impact Fund, etc.) in collaboration with the Alternative Investment Fund Providers.

3. This instruction will take immediate effect and remain valid until 30 September, 2022.

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

Yours faithfully,

(Md. Nazrul Islam)
General Manager
Phone: 9530252