Regulatory Alerts2025-05-08
Added
BRPD Circular No. 03: Transactions with Bank-Related Persons or Institutions
Bangladesh Bank instructs all scheduled banks to adhere to specific rules for transactions with bank-related persons or institutions, defining these entities to include directors, significant shareholders, and their controlled companies. The circular caps aggregate credit facilities to such related parties at 10 percent of the bank's Tier-1 capital and imposes a stricter 50 percent limit based on share value for directors and their families. It mandates prior approval from Bangladesh Bank for cumulative direct credit facilities of BDT 50 lakh or more, and aggregate facilities of BDT 1 crore or more, while prohibiting credit to independent and alternate directors. Banks are required to submit transaction data via the Rationalised Input Template to the Enterprise Data Warehouse portal within ten days after the end of each quarter, starting from September 2025.