Dhaka, May 14 -- Bangladesh Bank has significantly widened the borrowing space for businesses, raising the single-borrower loan limit for large corporate and group borrowers in a move aimed at easing access to finance and boosting industrial activity.

Under the new policy, businesses will now be able to borrow more from banks as the central bank has increased the combined ceiling for funded and non-funded exposure to 25 percent of a bank's capital.

The central bank sent instructions to managing directors of banks on Thursday.

Previously, the limit for funded loans alone stood at 15 percent of capital for a single borrower.

The central bank said the decision is intended to reduce financing pressure in international trade and support bu...