SFD Circular Letter No. 02: Compliance with Bangladesh Bank’s Instructions on Brick Kiln Financing

Bangladesh Bank Department of Supervision Head Office, Dhaka-1000 Bangladesh. website: www.bb.org.bd Circular Letter

SFD Circular Letter No.-02/2026 26 Chaitra 1432 Date:--------------------- 09 April 2026

To: All Chief Executive Officers/Head of Departments Subject: Compliance with Bangladesh Bank’s Instructions on Brick Kiln Financing.

Dear Sir,

With reference to the instructions issued by Bangladesh Bank on financing through brick kilns.

In this regard, SFD Circular Letter No.-03, dated 26 June 2022 and SFD Circular Letter No.-03, dated 22 October 2023 have been kept in view.

2. The issuance of loans and advances for brick manufacturing units, which are major sources of air pollution, has led to a significant increase in air pollution. In this regard, the Air Pollution (Control) Act, 2022 has designated such areas as Degraded Air Sheds. It is noted that the Sustainable Finance Policy-2023 issued by Bangladesh Bank explicitly prohibits financing for brick kiln manufacturing units through clean energy and other financing facilities. However, the Environmental and Social Risk Management (ESRM)-2022 guideline issued by Bangladesh Bank explicitly states that financing for brick production through Fixed Chimney Kiln (FCK) is excluded, and for other brick manufacturing units besides the aforementioned, Environmental and Social Due Diligence (ESDD) is mandatory.

3. Therefore, all banks and financial institutions are directed to strictly comply with the instructions on financing through brick kilns as per the Sustainable Finance Policy and ESRM Guideline.

4. Failure to comply with the aforementioned instructions shall be considered a violation of Section 45 of the Bank Company (Amendment) Act, 2023 and Section 41 of the Financial Institutions Act, 2023, and appropriate action will be taken accordingly.

Signed,

(Md. Riaz Ali) Chief General Manager (SFD) Fax: 9530320