Regulatory Alerts2026-01-06
Added
Prudential Regulations for Consumer Financing (Regulation 23 for Housing Finance)
Bangladesh Bank amends Regulation 23 of the Prudential Regulations for Consumer Financing to update housing finance limits based on the percentage of classified loans. Banks must adhere to maximum per-party limits of BDT 40 million, 30 million, or 20 million depending on whether classified loans are less than or equal to 5%, greater than 5% but less than or equal to 10%, or greater than 10% of total outstanding housing finance. The regulation also sets a maximum debt-to-equity ratio of 70:30 and requires banks to verify adequate net cash inflow for loan servicing. This directive supersedes previous instructions and comes into force immediately.
Topics
Share