BRPD Circular No. 01: Loan Classification and Provisioning

Banks in Bangladesh must maintain a 1% General Provision against all unclassified Housing Finance loans under Consumer Financing, reducing the previous requirement of 2%. This change applies to all Scheduled Banks in Bangladesh and replaces the provision rate specified in BRPD Circular No. 05 dated May 29, 2013. The adjustment takes retrospective effect from 31 December 2017.

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website: www.bb.org.bd
Banking Regulation & Policy Department
Bangladesh Bank
Head Office
Dhaka-1000
20 February, 2018
BRPD Circular No- 01 Date : ------------------------ 08 Falgun, 1424

Chief Executives
All Scheduled Banks in Bangladesh
Dear Sir,
Loan Classification and Provisioning.
Please refer to BRPD Circular No. 05, dated May 29, 2013 on the captioned subject. As per the above mentioned circular banks are required to maintain 2% General Provision against unclassified Housing Finance under Consumer Financing. With a view to promoting growth in the real estate sector through banks' participation in housing finance, it has been decided that banks have to maintain 1% General Provision instead of 2% against all unclassified Housing Finance loans under Consumer Financing. This circular has been issued with retrospective effect from 31 December 2017. Yours sincerely, (Abu Farah Md. Nasser) General Manager Phone: 9530252

Lineage: In force

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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