Regulatory Alerts2026-02-26
Added
Guidelines for Open Market Operations
The document establishes operational frameworks for Open Market Operations, defining instruments for conventional banks such as Repurchase Agreements, Standing Lending and Deposit Facilities, and Bangladesh Bank Bills, alongside Shari’ah-compliant tools like the Islamic Banks Liquidity Facility for Islamic financial institutions. It mandates minimum application amounts of BDT 1 crore for liquidity facilities and BDT 10 lac for bill auctions, while specifying tenors, interest rate determinations by the Monetary Policy Committee, and automated settlement procedures via the Financial Market Infrastructure system. The guidelines enforce strict default clauses allowing collateral liquidation and impose penalty charges equivalent to the facility rate for non-compliance, ensuring these rights remain enforceable even during insolvency proceedings.