Regulatory Alerts2026-06-11
FEPD-1 Circular No. 11: Development and facilitation of alternative trade finance mechanisms
Bangladesh Bank issued this circular to authorize Authorized Dealers to facilitate alternative trade finance mechanisms alongside conventional Letters of Credit. The directive permits specific instruments including advance payments, open account trade, documentary collection, and supply chain finance solutions such as reverse factoring. Institutions must implement robust risk management frameworks, obtain regulatory acknowledgement for new supply chain products, and encourage the adoption of digital documentation systems.
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