Regulatory Alerts2014-01-16
Added · Updated
BRPD Circular No. 02: Single Borrower Exposure Limit
This circular consolidates instructions and amends rules regarding single borrower exposure limits for all scheduled banks in Bangladesh. It establishes that total exposure to a single person or group must not exceed 35% of capital, with funded exposures capped at 15%, while export financing allows up to 50% total exposure. The document defines large loans as exposures equal to or greater than 10% of capital and sets portfolio ceilings based on the bank's net classified loans ratio. It also outlines exceptions for government guarantees, specific power sector entities, interbank transactions, and secured loans, alongside prudential norms requiring Credit Risk Grading and Board approval for large loans.
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