Regulatory Alerts2024-12-31
Added
Prudential Regulations for Consumer Financing (Regulation for Auto Loans)
Bangladesh Bank amends Regulation 16 of the Prudential Regulations for Consumer Financing to cap auto loans, including insurance, at TK. 6 million per individual, treating facilities for dependent members as part of that individual's exposure. The directive sets a maximum debt-equity ratio of 60:40 for standard auto loans, while allowing a 70:30 ratio for hybrid or electric vehicles. This circular supersedes previous instructions and comes into force immediately.