Regulatory Alerts2023-01-19
Added
BRPD Circular No. 02: Policy Regarding Establishment of Banks’ Business Centers & Their Rent/Lease Related Issues
Bangladesh Bank replaces previous circulars with new policies governing the establishment, relocation, merger, conversion, and closure of bank business centers, including branches, sub-branches, booths, and business development centers. The directive sets specific operational requirements, such as mandating that at least 50% of approved branches be rural and 60% of sub-branches be located outside city corporations and Class 'A' municipalities. It establishes strict financial and spatial limits, capping building rent leases at 20 years, restricting rent increases to 15% every three years, and limiting setup costs to 2,000 BDT per square foot for new centers and 1,400 BDT for relocations. Banks must obtain prior approval from Bangladesh Bank for these activities and submit annual rent details by January 15.