Regulatory Alerts2014-02-23
Added · Updated
BRPD Circular No. 04: Transactions with Bank-Related Persons
This circular establishes regulations for transactions with bank-related persons, prohibiting less favorable terms and requiring prior Board approval for all financial transactions. It caps aggregate funded exposure to bank-related persons at 10% of Tier-1 capital and imposes specific loan limits, such as 50% of share face value for directors, with prior Bangladesh Bank approval required for facilities exceeding 5 million taka. The document bans loans to independent and alternate directors, restricts new lending to government-nominated directors and the MD/CEO, and mandates reporting for significant shareholder loans exceeding 10 million taka. It repeals nine previous circulars and takes immediate effect.
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