Regulatory Alerts2023-12-05
Added
BRPD Circular No. 17: Prompt Corrective Action (PCA) Framework
The Prompt Corrective Action Framework classifies scheduled bank companies in Bangladesh into four categories based on Capital to Risk weighted Assets Ratio, Tier 1 and CET1 capital ratios, Net Non Performing Loan levels, and corporate governance standards. Banks falling within specified parameter ranges for defined durations face mandatory corrective actions, including restrictions on dividend distribution, limits on risk-weighted asset growth, and caps on operational cost increases. The framework becomes effective on 31 March 2025 based on audited financials for the period ended 31 December 2024, and non-compliance may result in penal measures, compulsory mergers, or other special measures under the Bank Company Act, 1991.
Topics
Share