DFIM Circular Letter No. 13: Regarding Taking Prior Approval for Renewal of Building/Floor Space Rental or Lease Agreement for FI's

Financial Institutions and Market Department Bangladesh Bank Head Office Dhaka-1000. Ref No.: DFIM Circular Letter No. 13

To: Chief Executive/Managing Directors All Financial Institutions Operating in Bangladesh

Dear Sir,

Regarding obtaining prior approval from Bangladesh Bank for the renewal of building/premises rental agreements.

Reference is made to Circular No. 07 dated June 28, 2010, and Circular Letter No. 04 dated September 07, 2015, on the subject cited above.

To ensure greater transparency in the rental/lease of buildings/premises by financial institutions, the following instructions contained in the aforementioned circulars/circular letters shall be maintained:

(a) The initial contract period for building rentals by financial institutions shall be a minimum of 3 (three) years, and the contract period for renewed contracts shall be a minimum of 2 (two) years.

(b) In the case of renewal within the existing contract period, prior approval from Bangladesh Bank must be obtained if the rent increase rate for 2 (two) years exceeds 10%, and if it exceeds 15% for a period of 3 (three) years or more.

These instructions shall be implemented immediately.

Yours faithfully,

(Joyshree Bagchi) Deputy General Manager Phone: 9530249

August 05, 2019 21 Srabon 1426