Regulatory Alerts2020-02-27
Added · Updated
Revised Guidelines on Commercial Paper for Financial Institutions
The Department of Financial Institutions and Markets at Bangladesh Bank revises the guidelines for Financial Institutions acting as issuers, investors, or Issuing and Paying Agents for Commercial Paper. Issuers must maintain paid-up capital of at least BDT 1000 million, a CAMELS rating of at least 3, and ensure issuance does not exceed 30% of total capital. Investors are restricted to holding no more than 20% of their total capital in CPs, with a maximum of 10% in any single company, and must verify specific financial ratios and credit ratings of the issuer. The guidelines also impose strict provisioning requirements for defaulted CPs and mandate quarterly reporting to the regulator.
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