Regulatory Alerts2025-01-30
Added
Guidelines for Offshore Banking Business of Scheduled Commercial Banks in Bangladesh
This circular establishes regulations for offshore banking units (OBUs) of scheduled commercial banks in Bangladesh under the Offshore Banking Act, 2024. It permits OBUs to provide banking services, trade finance, and accept deposits from foreign-owned enterprises in specialized zones and non-residents, while prohibiting immediate repayment deposits and excessive lending to bank-related persons. Scheduled commercial banks must obtain OBU licenses, maintain a minimum offshore asset-to-liability ratio of 75%, and are exempt from Cash Reserve Ratio requirements for these operations. Existing OBU approvals are recognized as licenses, with a two-month deadline to submit approval letters, and previous related circulars are superseded with immediate effect.