Regulatory Alerts2020-05-13
Added · Updated
DMD Circular No. 02: Term Repo (360 Days) facilities to mitigate the crisis due to novel corona virus (COVID19)
The Department of Management and Development of Bangladesh Bank introduces a 360-day special repo facility to manage liquidity in the money market during the COVID-19 crisis. Participating scheduled banks and financial institutions may obtain funds by pledging government securities held in excess of their Statutory Liquidity Ratio (SLR), with loan amounts determined by applying haircuts of 15% to Treasury Bills and 5% to Bonds against their face value. The borrowed funds must be utilized to implement government and central bank financial stimulus packages, cannot be invested in government securities or Bangladesh Bank bills without prior approval, and must be reported monthly to the Department of Management and Development.
More like this from BB
BB published 33 documents in the last 30 days. We email you each new one the day it's published.