Regulatory Alerts2025-11-11
Added
FEPD Circular Letter No. 34: Allowing OBUs to extend trade finance through other ADs
Bangladesh Bank replaces paragraphs D(2) and D(3) of FE Circular No. 11 to allow Offshore Banking Units (OBUs) to extend trade finance to enterprises in both specialized and non-specialized zones. OBUs may arrange this financing through Authorized Dealers (ADs) of their own bank or through ADs of other banks, subject to comprehensive risk assessment including counterparty exposure and limit evaluation. Such financing must comply with existing prudential credit norms and due diligence requirements and is available in the form of buyer’s credit, accepted bill financing, and other permissible instruments for the allowable tenure.
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