2010-12-29

Added · Updated

BRPD Circular No. 35: Amendment in Guidelines on Risk Based Capital Adequacy (RBCA) for Banks

Bangladesh Bank amends the Revised Guidelines on Risk Based Capital Adequacy (RBCA) for Banks by rephrasing and revising specific directives to enhance transparency. Key changes include limiting Tier 3 capital support for market risk to a maximum of 250% of Tier 1 capital, mandating a 50% deduction from Tier 1 and Tier 2 capital for unauthorized equity share holdings, and setting a maximum aggregate exposure limit of BDT 1.00 crore for SMEs. The circular also updates risk weight tables, replaces 'small enterprise' with 'SME', revises the definition of market risk to require inclusion of all listed shares in the trading book, and introduces an evaluation of core risk management linked to additional capital requirements.

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