Regulatory Alerts2016-09-25
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BRPD Circular No. 07: Guidelines on Commercial Paper (CP) for Banks
The document establishes uniform procedures for the issuance and sale of commercial paper, defined as short-term money-market instruments with maturities ranging from seven days to one year. These guidelines apply to all scheduled banks in Bangladesh and are intended to serve as an alternative to bank financing for highly rated large companies. The circular and its accompanying guidelines became effective immediately upon issuance on 25 September 2016.
Website: www.bb.org.bd Banking Regulation & Policy Department Bangladesh Bank Head Office Dhaka 10 Ashwin 1423 BRPD Circular No- 07 Date: ------------------------- 25 September 2016 Managing Directors/Chief Executives All Scheduled Banks in Bangladesh Dear Sir, Guidelines on Commercial Paper (CP) for Banks. Commercial paper (CP) is a short term money-market instrument, which has an original maturity between a minimum of seven days and a maximum of one year, issued/sold usually by highly rated large companies. As an alternative to bank financing, it enables the issuers of CPs to diversify their sources of short-term borrowings and promotes competitiveness of the financial sector. In this context, it is desired that participants of the money market should practice a uniform procedure. Guidelines on Commercial Paper (CP) for Banks is hereby issued for this purpose. This circular along with the guidelines is available on the website of Bangladesh Bank and shall come into force with an immediate effect. Yours Sincerely, (Abu Farah Md Nasser) General Manager Phone-9530252
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