Regulatory Alerts2017-04-05
Added · Updated
BRPD Circular No. 05: Investment in Bond/Debentures
This circular amends investment limits for scheduled banks in Bangladesh regarding bonds and debentures, restricting investment in a single company's instruments to a maximum of 5% of the bank's aggregate paid-up capital, share premium, statutory reserves, and retained earnings. It mandates that such instruments must be approved by the Bangladesh Securities and Exchange Commission and rated by a Bangladesh Bank-approved credit rating agency, with minimum long-term ratings of '2' and short-term ratings of 'T2'. The previous circular (No. 01) is repealed, existing holdings exceeding the new limit may be retained until maturity but must be reduced to the 5% threshold upon maturity, and the rules do not apply to unlisted sub-debt instruments.
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