Regulatory Alerts2023-12-04
Added
DOS Circular Letter No. 27: Mark-to-Market based Revaluation of Treasury Bills and Bonds held by the Banks
Bangladesh Bank has revised instructions for all scheduled banks regarding the mark-to-market revaluation of treasury bills and bonds. Primary Dealer (PD) banks must maintain a quarterly average of at least 20% of their total securities in the Held-for-Trading (HFT) category, with a one-time option to transfer surplus HFT securities to Held-to-Maturity (HTM) by December 31, 2023, and face penalties for non-compliance. Non-PD banks are now limited to holding a maximum of 120% of their required Statutory Liquidity Ratio (SLR) in HTM securities, which must be reduced to 110% by December 31, 2024. These instructions are effective immediately and supersede DOS Circular Letter No. 42 dated October 7, 2021.
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