On Sep. 29, BNG CB issued rules on risk weight/different investments.
BNG CB determined risks of investments in different sectors of alternative investment.
Revised regulatory capital framework for certain bank exposures, in line with Basel III.
Capital directive has been issued under s 45 of the banking companies act, 1991.
Risk Weights
Instructions to impose 150% risk weight as opposed to investments in venture capital.
At present, to expand alternative investment sector in Bangladesh, a risk rate of 100% is fixed against investments in all sectors, that are made under alternative investment.
These include private equity, impact funds, as well as investments in venture capital.
Effectiveness
Directive becomes effective immediately, and will remain in force until Sep, 30, 2022.
Oct. 2020 Rationalized Input Template
On Oct. 17, 2020, BNG CB informed on changes in rationalized input template (RIT).
The updated RIT has been uploaded on the BNG CB web portal with new risk weight.
Revised RIT should be used for quarterly submissions from Sep. 2020 to Sep. 2022.
Mar. 8, 2021 Wage Earner Remittance
On Mar. 8, 2021, BNG CB published circular letter No. 3, which outlines the submission of wage earners' remittance data through rationalized input template (RIT).
Nov. 2022 Risk Weight Reduced
On Nov. 30, 2022, BNG CB issued circular to extend reduced risk-weighted (interest) or determining risk weighted asset to 100%, instead of 150%, until Sep. 30, 2024.
To encourage employment opportunities, expansion of alternative investment sector.
