BB relaxes single borrower, large loan exposure limits to boost trade finance
Dhaka, May 14 -- Bangladesh Bank (BB) has relaxed the limits for single borrower and large loan exposures to facilitate international trade finance for businesses and industries.
According to a recent circular issued by the central bank, the previous restriction limiting aggregate principal exposure (funded and non-funded) to a single person, counterparty, or group at 15 percent of a bank's capital has been postponed until June 30, 2028. Until that date, the exposure limit has been increased to 25 percent of the bank's capital.
The central bank has also introduced a reduced conversion factor for non-funded exposure. A conversion factor of 0.25 (25 percent) will now be applied to non-funded exposure, down from the previous 0.50 (50 perce...
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