BRPD Circular No. 06: Capital Adequacy of Banks

Website: www.bangladesh-bank.org www.bangladeshbank.org.bd Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka May 21, 2008 BRPD Circular No. 06 Date:------------------------- Jaistha 07, 1415 Chief Executives All Scheduled Banks in Bangladesh Dear Sir, Capital Adequacy of Banks Please refer to Annexure-III regarding credit conversion factors for selected Off-Balance Sheet Items as mentioned in BRPD Circular No.10 dated November 25, 2002. 02. Paragraph 5 of the said annexure-III has been reviewed and found that it does not cover the ‘Hedging the price risk of commodity transactions’. So, it will be supplemented and rephrased as follows: “Short term self liquidating trade related contingencies (e.g. documentary letters of credit, hedging the price risk of commodity transactions and other trade financing transactions)” All other instructions as stipulated in BRPD Circular No. 10 dated November 25, 2002 and BRPD Circular No. 01 dated February 19, 2007 will remain unchanged. Please acknowledge receipt. Yours sincerely, (Md. Jahangir Alam) General Manager Phone: 7117825