Regulatory Alerts2023-04-25
Added
BRPD Circular No. 06: Policy on Off-Balance Sheet (OBS) Exposure
Bangladesh Bank mandates specific provisioning percentages for Off-Balance Sheet exposures, including 1.00% for acceptances, 0.50% for short-term trade letters of credit, and 1.00% for other letters of credit. The directive establishes a tiered provisioning structure for bank guarantees based on counter-guarantee ratings, ranging from 0% to 0.75%, and sets additional provisions of 1% to 5% for overdue exposures or 5% for litigated cases. All previous instructions on this subject are superseded, and banks are required to maintain continuous monitoring and submit quarterly OBS statements immediately.
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