2014-02-25

Added · Updated

Consolidated Capital Market Investment Limit for Scheduled Banks

The market value of total capital market investment by banking companies on a consolidated basis is capped at 50% of the sum of consolidated paid-up capital, share premium, statutory reserve, and retained earnings. This limit applies to scheduled banks in Bangladesh, requiring them to include subsidiary investments, subscriptions to capital market funds, margin loans to customers, and bridge loans while excluding inter-company transactions between parent and subsidiaries. Banks exceeding this threshold must reduce their exposure gradually by July 21, 2016, and are required to submit monthly solo and consolidated position reports to the Department of Off-site Supervision within the 10th of the following month.

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