Central bank eases regulation of state-owned commercial banks

| Update:
Sept. 07, 2021, 10:26 a.m.

The central bank has relaxed regulations allowing state commercial banks (SoCBs) to participate in the Green Transformation Fund (GTF), officials said.

As part of the easing, banks are now allowed to participate in the GTF without maintaining regulations regarding classified loans and the capital gap, they added.

“We have relaxed these regulations to bring state commercial bank customers into GTF,” a senior Bangladesh Bank (BB) official told FE, responding to a question.

The central bank issued a circular on this subject on Sunday.

Under existing arrangements, participating banks must maintain an acceptable level of non-performing loans not exceeding 10 percent.

No bank will be eligible in the event of insufficient loan / investment, capital and liquidity, in accordance with the GTF circular published in 2016.

The instructions on the eligibility criteria of participating Authorized Dealers (ADs) of private commercial banks and foreign commercial banks will remain unchanged, according to the notification.

The central bank manages GTF with funds of US $ 200 million and € 200 million.

Participating banks can receive GTF financing against their loans to export-oriented industries.

The fund is used to import equipment and accessories for the implementation of green or environmentally friendly initiatives.

[email protected]

About Ruben V. Albin

Check Also

Saudi commercial banks’ June deposits rose 8.7%, their highest level in 16 months

Focus on India – Trade with Russia and Sri Lanka expected to reach $9 billion; …