DOS Circular Letter No. 26: Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)

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Bangladesh Bank
Head Office
Post Box No.-325
Dhaka
DOS Circular Letter No.26 Date: 19/08/2019 Managing Director/Chief Executive Officer All Scheduled Banks in Bangladesh Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) Please refer to BRPD Circular No.-02 dated 25/02/2019 and BRPD Circular Letter No.-09 dated 27/05/2019 on Policy for Offshore Banking Operation of the Banks in Bangladesh. In compliance with the instructions issued by the above circular and circular letter, banks having Offshore Banking Operation (OBO) shall be required to maintain Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for the liabilities arising from the operation. The instructions issued by DOS Circular No.-01, dated 19/01/2014 and DOS Circular Letter No.-23, dated 07/10/2018 are applicable for the maintenance of CRR and SLR for Domestic Banking Operation (DBO). It has been decided that the following instructions will be applicable for the maintenance of CRR and SLR for OBO by the banks in addition to the previous circular and circular letter issued by the Department of Off-site Supervision (DOS) in this regard:

Liabilities of OBO:
Banks have to reckon the following components of demand and time liabilities for the calculation of required cash reserve and statutory liquidity reserve for OBO:
i. Customer Deposit;
ii. Deposit From Banks (Outside Bangladesh);
iii. Borrowing From Banks (Outside Bangladesh);
iv. Deposit From Financial Institutions (Outside Bangladesh);
v. Borrowing From Financial Institutions (Outside Bangladesh);
vi. Other payable Liabilities (excluding domestic intra-bank and interbank OBO to OBO
transactions) .
Use of Foreign Currency for the maintenance of CRR:
Banks may maintain entire CRR for both DBO and OBO in Bangladeshi Taka (BDT). If desired, banks may use, partly or fully for the whole bi-week, available credit balance from FC Clearing Account (equivalent to BDT at the rate published by BB) maintained with Bangladesh Bank (BB) to meet the daily minimum required cash reserve stemming from OBO only. In this case, to meet the average CRR for bi-week, the rest amount of cash reserve shall have to be met with BDT. The foreign currency to be used shall have to be unencumbered in every aspect.
Use of Nostro Account credit balance for the maintenance of SLR:
Banks may maintain entire SLR for both DBO and OBO in the eligible components described in DOS Circular No.-01, dated 19/01/2014. Moreover, if desired banks may also use credit balance of Nostro Accounts (equivalent to BDT at the rate published by BB ; the recognized currencies are USD, GBP, EURO, YEN, CAD and CNY) maintained with correspondence banks to fulfill the SLR requirement stemming from OBO only. Website:www.bb.org.bd Department of Off-site Supervision

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4) Calculation of daily Excess Reserve (ER):
The Calculation of daily Excess Reserve (ER) for banks having no OBO will remain the same as instructed in the DOS Circular No.-01, dated 19/01/2014. For banks having both DBO and OBO, the amount of daily excess reserve will be determined using the following formulas:
Unencumbered Current A/C Balance with BB - Bi-weekly Req. cash for DBO = X ... ... (i) Bi-weekly Req. cash reserve for OBO - Unencumbered FC used (equivalent to BDT) for the maintenance of daily cash reserve from FC Clearing a/c with BB = Y ... ... ... ... ... (ii) From (i) and (ii) above - a) if X = 0 or X = -ve than ER = 0 b) if X = +ve, Y = +ve, and X>Y than ER = X-Y c) if X = +ve, Y = +ve and X<Y than ER = 0
5) Para 2(b)(ii) of the DOS Circular No.-01, dated 19/01/2014 will be replaced as under:
"Guidelines for use of Foreign Currency from Foreign Currency Clearing Account for CRR (only for requirement against OBO) and SLR purpose:
Banks may use foreign currency (equivalent to BDT at the rate published by BB) from Foreign Currency Clearing Account maintained with BB for CRR (only to fulfill the requirement against OBO) and SLR purpose as long as there is credit balance in the account. However, no interest will be paid on the used portion of foreign currency. Forex Reserve and Treasury Management Department (FRTMD) of BB will credit interest on the balance held in the account as usual. After getting the certification from Department of Off-site supervision (DOS) regarding the actual amount of foreign currency used for CRR (only for requirement against OBO) and SLR purpose, FRTMD will adjust (if required) the interest amount. Banks should take utmost care while reporting the use of foreign currency in DB-5FC statement as any misreporting regarding the amount of foreign currency used for CRR and SLR purpose will attract a penalty two times of the amount of interest already credited for the misreported amount along with reversal of the interest credited."
6) Reporting:
For smooth reporting, the formats provided with DOS Circular No.-01, dated 19/01/2014 and DOS Circular Letter No.-23, dated 07/10/2018 are suitably amended and attached with this circular letter. The soft copies of the formats are available for collection from Department of Off-site Supervision.
7) Other instructions of DOS Circular No.-01, dated 19/01/2014 and DOS Circular Letter
No.-23, dated 07/10/2018 will remain unchanged. The instruction of this circular letter will come into effect from 01 September 2019. For once, banks have to submit (or re-submit, in case already submitted in the old formats) the information of Total Demand and Time Liabilities (TDTL) of July 2019 in the new DB-4(C) and DB-4(I) formats within 27 August 2019. Online submission of all the statements will remain suspended until further notice. Sincerely Yours, Sd./- (Md Rezaul Islam) General Manager Phone: 9530093

Month Year
Bank Name: Branches:
Tk in '000
DATE:
ATDTL
0
2. Deposit From Banks
0
2. Deposit From Banks
0
2. Deposit From Banks (Outside Bangladesh) 0
2. Deposit From Banks (Outside Bangladesh) 0
Year amount 0
5.00% 0
5.00% 0 amount 0
5.50% 0
5.50% 0 amount 0
13.00% 0
13.00% 0
Authorized Officer:
ID No. ID No.
Name: Name:
Designation: Designation:
Phone: Phone:
Mobile No. Mobile No.
8. Other time Liabilities
Sub-Total iv) Sub-Total of Countable Time Liabilities (1+2+3+4+5+8) Total of Countable Liabilities for OBO (iii+iv)
C. Statutory Reserve Obligations for the month of :
STATEMENT DB-4(c)
Thursday Positions of Demand And Time Liabilities (For Conventional Banking) Submitted Under Bank Company Act, 1991 and Bangladesh Bank Order, 1972 No. of Weeks reported:
A. Demand Liabilities in DBO:

Customer Deposit
Borrowing From Banks
Deposit From Financial Institutions
Borrowing From Financial Institutions
Other Demand Liabilities
Sub-Total i) Sub-Total of Countable Demand Liabilities (1+4+5+6) B. Time Liabilities in DBO:
Customer Deposit
Borrowing From Banks
Deposit From Financial Institutions
Borrowing From Financial Institutions
Other Time Liabilities
(a) Subordinated bond surplus
(1) Total amount of Subordinated bond
i. Investment by other banks
ii. Investment by NBFIs
iii. Investment by others
(2) Investment in subordinated bond of other banks (b) Other time liabilities excluding B.6.(a)(1) Sub-Total ii) Sub-Total of Countable Time Liabilities (1+4+5+6) Total of Countable Liabilities for DBO (i+ii)
C. Demand Liabilities in OBO:
Customer Deposit
Borrowing From Banks (Outside Bangladesh)
Deposit From Financial Institutions (Outside Bangladesh)
Borrowing From Financial Institutions (Outside Bangladesh)
Other Demand Liabilities
Sub-Total
Placement/Deposit from other OBOs within Bangladesh
Funds from DBO
iii) Sub-Total of Countable Demand Liabilities (1+2+3+4+5+8) D. Time Liabilities in OBO:
Customer Deposit
Borrowing From Banks (Outside Bangladesh)
Deposit From Financial Institutions (Outside Bangladesh)
Borrowing From Financial Institutions (Outside Bangladesh)
Placement/Deposit from other OBOs within Bangladesh
Funds from DBO
of which for DBO of which for OBO
Total of Countable Liabilities (i+ii+iii+iv)
Daily minimum cash reserve to be maintained @
CRR (average daily on bi-weekly basis) @
SLR on daily basis @
of which for DBO of which for OBO of which for DBO of which for OBO

Daily minimum cash reserve to be maintained @
CRR (average daily on bi-weekly basis) @
SLR on daily basis @
of which for DBO of which for OBO of which for DBO of which for OBO Sub-Total
Placement/Deposit from other OBOs within Bangladesh
Funds from DBO
iii) Sub-Total of Countable Demand Liabilities (1+2+3+4+5+8) D. Time Liabilities in OBO:
Customer Deposit
Borrowing From Banks (Outside Bangladesh)
Deposit From Financial Institutions (Outside Bangladesh)
Borrowing From Financial Institutions (Outside Bangladesh)
Placement/Deposit from other OBOs within Bangladesh
Funds from DBO
of which for DBO of which for OBO
Total of Countable Liabilities (i+ii+iii+iv)
Customer Deposit
Borrowing From Banks (Outside Bangladesh)
Deposit From Financial Institutions (Outside Bangladesh)
Borrowing From Financial Institutions (Outside Bangladesh)
Other Demand Liabilities
(b) Other time liabilities excluding B.6.(a)(1) Sub-Total ii) Sub-Total of Countable Time Liabilities (1+4+5+6) Total of Countable Liabilities for DBO (i+ii)
C. Demand Liabilities in OBO:
(1) Total amount of Subordinated bond
i. Investment by other banks
ii. Investment by NBFIs
iii. Investment by others
(2) Investment in subordinated bond of other banks
Borrowing From Banks
Deposit From Financial Institutions
Borrowing From Financial Institutions
Other Time Liabilities
(a) Subordinated bond surplus
Other Demand Liabilities
Sub-Total i) Sub-Total of Countable Demand Liabilities (1+4+5+6) B. Time Liabilities in DBO:
Customer Deposit
A. Demand Liabilities in DBO:
Customer Deposit
Borrowing From Banks
Deposit From Financial Institutions
Borrowing From Financial Institutions
STATEMENT DB-4(I)
Thursday Positions of Demand And Time Liabilities (For Islami Shariah based Banking) Submitted Under Bank Company Act, 1991 and Bangladesh Bank Order, 1972 No. of Weeks reported:
Other time Liabilities
Sub-Total iv) Sub-Total of Countable Time Liabilities (1+2+3+4+5+8) Total of Countable Liabilities for OBO (iii+iv)
C. Statutory Reserve Obligations for the month of :

(TK. In thousand)
For DBO For OBO Total For DBO for OBO Total a b c d e f=(d+e)-c g h i j k 1st Bi-week 0 2nd Bi-week 0 Authorized Officer:
ID No: ID No:
Name: Name:
Designation: Designation:
Phone: Phone:
Mobile No: Mobile No:
Daily Excess
Reserve
Bi-weekly excess/shortfall
Name of the Bank:
Date
Balance with
Bangladesh Bank in
TK. Current a/c
Available FC used
(equ. BDT) from
FC clg A/C
(applicable for
OBO only)
Excess/Shortfall
(daily basis)
Statement Regarding Maintenance of CRR(C)
0
Daily Minimum CRR
0
Bi-weekly average CRR
Submitted under Article 36(3) of Bangladesh Bank Order, 1972 (To be submitted monthly within the 10th of the following month)

(TK.in thousand)
For DBO For OBO Total For DBO for OBO Total a b c d e f=(d+e)-c g h i j k 1st Bi-week 0 2nd Bi-week 0 Authorized Officer:
ID No: ID No:
Name: Name:
Designation: Designation:
Phone: Phone:
Mobile No: Mobile No:
Statement Regarding Maintenance of CRR(I)
0
Daily Minimum CRR
0
Bi-weekly average CRR
Submitted under Article 36(3) of Bangladesh Bank Order, 1972 (To be submitted monthly within the 10th of the following month) Daily Excess Reserve Bi-weekly excess/shortfall Name of the Bank:
Date
Balance with
Bangladesh Bank in
TK. Current a/c
Available FC used
(equ. BDT) from
FC clg A/C
(applicable for
OBO only)
Excess/Shortfall
(daily basis)

USD ($) GBP (₤) EURO (€) Yen (¥) CAD($) Yuan(CNY) USD ($) GBP (₤) EURO (€) Yen (¥) CAD($) Yuan(CNY) USD ($) GBP (₤) EURO (€) Yen (¥) CAD($) Yuan(CNY) a b c d e f g h i j k l m n o p q r s

ID No. ID No.
Name: Name:
Designation: Designation:
Phone: Phone:
Mobile No. Mobile No.
Date
Total Foreign Currency Balance (in unit)
F.C. Clg. Account maintained with BB Total amount in BDT ('000) Nostro A/C (for DBO only) Nostro A/C (for OBO only) Total amount in BDT ('000) Statement DB-5FCB Regarding Balance of foreign currency in F.C.Clg. a/c And Nostro a/c Authorized Officer:
To be submitted monthly along with CRR/SLR statements Name of the Bank :

ID No. ID No.
Name: Name:
Designation: Designation:
Phone: Phone:
Mobile No. Mobile No.
Statement DB-5FCU Regarding Use of foreign currency from F.C.Clg. a/c & Nostro a/c for the maintenance of CRR and SLR Authorized Officer:
Date
For CRR from F.C Clg. Account (in unit) maintained with BB To be submitted monthly along with CRR/SLR statements Name of the Bank :
For SLR
From F.C. Clg. Account (in unit) maintained with BB Total amount in BDT ('000) Total amount in BDT ('000) Total amount in BDT ('000) From Nostro A/C (in unit)

Name of Bank:
For DBO For OBO Total Other eligible securities Reverse-repo with BB a b c d e f g h i j k l m n T=e+g+h+i+j+k+l+m+n E/S=T-d 0.00 Authorized Officer:
ID No. ID No.
Name: Name:
Designation: Designation:
Phone: Phone:
Mobile No. Mobile No.
Statement DB-5(C) Regarding Maintenance of SLR under section 33(1) of Bank Company Act, 1991 (To be submitted monthly within the 10th of the following month) Cash in hand Date Total maintained Balance with Bangladesh Bank Excess/ Shortfall in SLR F.C. used in BDT (TK. In thousand) Unencumbered Approved Securities HTM HFT From F.C Clg a/c From Nostro a/c Required SLR Balance with Sonali bank as an agent of BB Daily Excess Others Reserve

For DBO For OBO Total Other eligible securities Reverse-repo with BB From FC Clg. a/c From Nostro a/c a b c d e f g h i j k l m n o T=e+g+h+i+j+k+l+m+n+o E/S=T-d
0.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00.00 0.00 0
Authorized Officer:
ID No. ID No.
Name: Name:
Designation: Designation:
Phone: Phone:
Mobile No. Mobile No.
F.C. used in BDT
Excess Reserve
Unencumbered Approved Securities
Total Excess/
HTM HFT Shortfall
Others Date Cash in hand Balance with
Bangladesh Bank
Balance with
Sonali bank as an agent of BB
Balance with
BB in Islamic
Refinance Fund
A/C
Required SLR
Statement DB-5(I) Regarding Maintenance of SLR under section 33(1) of Bank Company Act, 1991 (To be submitted monthly within the 10th of the following month) Name of the Bank (Only for Islami Shariah based banks) (TK. In thousand)

Other eligible securities
Reverse-repo with BB a b c d e f g h i j k T=c+e+f+g+h+i+j+k E/S=T-b 0.00 Authorized Officer:
ID No. ID No.
Name: Name:
Designation: Designation:
Phone: Phone:
Mobile No. Mobile No.
HTM HFT
Statement DB-5(I) Regarding Maintenance of SLR under section 33(1) of Bank Company Act, 1991 (To be submitted monthly within the 10th of the following month) Date Cash in hand Balance with Total Bangladesh Bank Balance with Sonali bank as an agent of BB F.C. used in BDT Excess/ Shortfall Name of the Bank Required SLR Others (Only for branches of conventional banks operated under Islamic Shariah) (TK. In thousand) Excess Reserve Unencumbered Approved Securities

DOS Circular Letter No. 26: Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)

Lineage: In force

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