Regulatory Alerts2024-10-14
Added · Updated
DMD Circular Letter No. 11: Mark-to-Market (MTM) Revaluation of Floating Rate Treasury Bond (FRTB) held under HFT category by banks
This circular modifies the Mark-to-Market (MTM) revaluation methodology for Floating Rate Treasury Bonds (FRTB) held by scheduled banks under the Held for Trading (HFT) category. Previously, banks were instructed to use secondary market yields for Treasury Bond revaluation. Now, for FRTB, banks must use the sum of the 91 Days BCR (Bangladesh Compounded Rate) on the revaluation date and the spread determined by the Bangladesh Bank's Auction Committee as the market yield for revaluation. This instruction is effective immediately for all scheduled banks operating in Bangladesh.
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