Bangladesh: Prudential Regulations for Banks: Selected Issues

This document includes prudential regulations on selected subjects for banks in Bangladesh. The regulations include:

• Policies on:
  • Capital adequacy of banks;
  • Loan classification and provisioning;
  • Single borrower exposure;
  • Rescheduling of loans;
  • Loan write off.
• Corporate governance in bank management;
• Restriction on lending to directors of private banks;
• Rules and regulations for appointment of chief executive and advisor in banks;
• Constitution of:
  • The board of directors, and fit and proper test for appointment of bank directors;
  • The audit committee of the board of directors.
• Disclosure requirements for banks;
• Large Loan Restructuring Scheme (LLRS);
• Requirement for obtaining information on large loan from credit information bureau;
• Payment of dividend by bank companies;
• Loan against shares, debentures etc.;
• Interest rates on deposit and lending;
• Bank charges;
• Banks deposit insurance scheme;
• Guidelines on:
  • Managing core risks in banking and credit rating;
  • Consumer financing and small enterprise financing.