Regulatory Alerts2025-05-18
Added
DFIM Circular No. 02: Regarding the policies related to establishment/expansion/relocation and rental/lease of finance companies' business centers
This circular replaces existing policies regarding the establishment, expansion, relocation, and rental or lease of business centers for finance companies operating in Bangladesh. It mandates prior policy approval from Bangladesh Bank for establishing or relocating head offices, and requires specific licensing and adherence to a 1:2 ratio for new branches outside Dhaka relative to those inside. The document sets strict limits on initial setup costs per square foot for branches, sub-branches, and booths, restricts sub-branch operations to areas without existing branches, and regulates lease terms to a maximum of 20 years with capped rent increases and advance payment limits. It also repeals several previous circulars and requires annual reporting of rental details.