Regulatory Alerts2025-07-03
Added
FE Circular No. 27: Access to finance against funds held in OBUs as collateral
Offshore Banking Units (OBUs) may allow foreign currency deposits of non-resident account-holders to be used by their domestic banking units (DBUs) as collateral for short-term working capital loans in local currency to resident companies, firms, and individuals. This facility requires a specific request from account-holders, verification of bona fide relations, and adherence to margin requirements for exchange rate risk, while prohibiting charges for the collateral. The directive explicitly excludes balances held in International Banking (IB) accounts and mandates specific reporting procedures for liquidated deposits, distinguishing between Non-Resident Bangladeshi (NRB) and non-NRB accounts.
Topics
fx
credit
Share