Regulatory Alerts2015-09-07
Added · Updated
DFIM Circular Letter No. 04: Renting Office Space for Extension or Relocation of Head Office, Branch/Booth etc. of all Financial Institutions
All financial institutions are prohibited from executing rental agreements or decorating premises for the extension, relocation, establishment, or expansion of head offices, branches, or booths without prior written approval from Bangladesh Bank. This directive clarifies that such actions constitute a clear violation of Section 7(1) of the Financial Institutions Act, 1993, and the decision is effective immediately.
DFIM Circular Letter No. 04
Managing Director / Chief Executive All Financial Institutions operating in Bangladesh.
Dear Sir,
Reference is drawn to your attention regarding DFIM Circular No. 07, dated June 28, 2010, on the subject of renting houses/offices for the extension/relocation of head offices and the establishment, extension, and relocation of branches/booths of financial institutions.
It has recently been observed that some financial institutions are entering into rental agreements and paying rent without obtaining written approval from Bangladesh Bank for opening new branches, which is a clear violation of the instructions stipulated in Section 7(1) of the Financial Institutions Act, 1993. Consequently, it has been decided that no financial institution shall enter into any rental agreement or decorate premises for the extension/relocation of head offices and the establishment, extension, and relocation of branches/booths without the written approval of Bangladesh Bank. The other instructions of the said circular shall remain unchanged.
This directive shall be implemented immediately.
Yours faithfully,
(Md. Shah Alam) General Manager Phone: 9530249
Date: September 07, 2015 / 23 Bhadra, 1422
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