DOS Circular Letter No. 30: Modification of Basel III related Rationalised Input Template (RIT)

Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh

18 October, 2020 AD DOS Circular Letter No. 30 Date: ------------------------ 02 Kartik, 1427 Bangabda

To, Managing Director/Chief Executive Officer All Scheduled Banks operating in Bangladesh.

Dear Sir,

Subject: Modification in the Basel III related Rationalised Input Template (RIT).

Reference is drawn to the guidelines issued vide BRPD Circular Letter No. 48, dated 9 September 2020 and BRPD Circular No. 18, dated 21 December 2014, regarding the risk weight for investments in unlisted equity.

2. Under Clause 7 of the aforementioned guidelines, a risk weight of 150% was prescribed for investments in unlisted equity. However, in accordance with BRPD Circular Letter No. 48/2020, a risk weight of 100% has been determined for investments in all sub-sectors under the unlisted equity sector (including private equity, impact funds, etc.) for the expansion of the unlisted equity sector in Bangladesh. This 100% risk weight will be applicable from the September 2020 quarter and will remain in force until the September 2022 quarter.

Accordingly, the Basel III related Rationalised Input Template (RIT) has been updated and uploaded to the website of Bangladesh Bank.

3. You are hereby directed to download the revised Basel III related Rationalised Input Template (RIT) from the Bangladesh Bank website and submit your capital adequacy reports using this template from the September 2020 quarter until the September 2022 quarter.

Yours faithfully,

(Shabnam Islam) Deputy General Manager Phone No.: 9530207 Department of Off-Site Supervision