Regulatory Alerts2012-07-23
Added · Updated
Clarifications on Risk Weighting for Claims on Merchant Banks, Brokerage Houses, and Exchange Houses under RBCA Guidelines
This circular clarifies the calculation of risk-weighted assets for bank claims on Merchant banks, Brokerage houses, and Exchange houses to determine minimum required capital. It mandates specific risk weights based on the type of exposure: 20% to 150% for loans to Exchange Houses depending on BB Rating Grade, 125% for loans to Merchant Banks and Brokerage Houses, 125% for unlisted equity investments in these entities, and the required minimum CAR for listed equity investments. These rules apply to all Scheduled Banks in Bangladesh for RBCA reporting starting from the September 2012 quarter end.
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