Regulatory Alerts2024-12-04
Added
DFIM Circular Letter No. 37: Master Circular: Loan/Lease Classification and Provisioning
The document amends the provisioning rates for loans and leases under the Master Circular to encourage investment in cottage, micro, small, and medium enterprises (MSMEs). For MSME loans, the provision rate for 'Special Mention' accounts is reduced to 0.25%, and the rates for 'Sub-standard', 'Doubtful', and 'Loss' accounts are set at 5%, 20%, and 100% respectively, which are lower than the standard rates of 20%, 50%, and 100% applied to all other loans. These revised provisions apply immediately to all finance companies operating in Bangladesh.
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