Sunday , 23 January 2022
Breaking News

BB extends deadline for exposure limit


Bangladesh Bank (BB), on Monday extended the deadline by one year more for adjustment of ‘single borrower exposure limit’ by the commercial banks for financing the operations of their brokerage houses and merchant banks.

A circular issued by the Department of On-site Supervision of BB said the commercial banks must adjust the loans exceeding the ‘single borrower exposure limits’ for their respective subsidiaries by December 31, 2014 instead of December 31, 2013 (Tuesday).

The BB has taken the measure against the backdrop of falling trend of institutional investment in the market by merchant banks and brokerages houses.

Under the existing provisions, the total outstanding financing facilities offered by any bank to any single person or enterprise or organization of a group is not to exceed 35 percent of the bank’s total capital at any point of time, subject to the condition that the maximum outstanding against fund-based financing facilities (funded facilities) does not exceed 15 percent of its total capital base.


Print Friendly

Comments are closed.