Regulatory Alerts2024-08-20
Added · Updated
FEPD Circular Letter No. 13: Regarding fund transfer from Domestic Banking to Offshore Banking Operations
Offshore Banking Operations are permitted to borrow funds from their Domestic Banking Units up to 30% of regulatory capital, inclusive of existing outstanding amounts. Offshore Banking Operations that currently exceed this 30% threshold must adjust their borrowings to comply with the limit by 31 December 2024. These instructions are effective immediately and apply to all Scheduled Banks in Bangladesh.
Bangladesh Bank Head Office Dhaka www.bb.org.bd Foreign Exchange Policy Department FE Circular Letter No. 13 Date: 20 August 2024 Managing Director/CEOs All Scheduled Banks in Bangladesh Dear Sirs, Regarding fund transfer from Domestic Banking to Offshore Banking Operations Please refer to section 12(4) of Offshore Banking Act-2024 and BRPD Circular Letter No. 04 dated 16th January 2024 on the captioned subject. 02. To facilitate Offshore Banking Operations (OBOs) and keeping their business uninterrupted, it has now been decided that OBOs are allowed to borrow funds from their Domestic Banking Units (DBUs) upto 30% (including present outstanding) of regulatory capital. It has also been decided that OBOs which already have excess borrowings (above 30%) from DBUs shall adjust within 31 December, 2024. 03. Please bring the above instructions, effective immediately, to the notice of your Domestic Banking and Offshore Banking Units. Yours faithfully, (Md. Sarwar Hossain) Director Phone: 9530123