{"id":130102,"date":"2026-03-10T14:08:39","date_gmt":"2026-03-10T14:08:39","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=130102"},"modified":"2026-03-10T14:08:39","modified_gmt":"2026-03-10T14:08:39","slug":"bangladesh-banking-finance","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/bangladesh-banking-finance\/","title":{"rendered":"Bangladesh: Banking &amp; Finance"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-130102","comparative_guide","type-comparative_guide","status-publish","hentry","guides-banking-finance","jurisdictions-bangladesh"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Tanjib Alam and Associates<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2023\/03\/tanjib-alam-associates.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Tanjib Alam and Associates<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2023\/03\/tanjib-alam-associates.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Banking &amp; Finance laws and regulations applicable in Bangladesh<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the national authorities for banking regulation, supervision and resolution in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The principal authority responsible for the regulation, supervision and resolution of banking and non-banking financial institutions in Bangladesh is the Bangladesh Bank, the central bank, established under the Bangladesh Bank Order, 1972.<\/p>\n<p>Bangladesh Bank licenses banking companies, issues prudential and operational directives, conducts onsite and off-site supervision, and exercises resolution powers under the Banking Companies Act, 1991. It also oversees payment systems under the Bangladesh Payment and Settlement Systems Act, 2024 and foreign exchange transactions under the Foreign Exchange Regulation Act, 1947.<\/p>\n<p>State owned banks are additionally subject to policy oversight by the Financial Institutions Division of the Ministry of Finance, while listed banks must comply with disclosure and governance rules issued by the Bangladesh Securities and Exchange Commission and the relevant listing regulations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which type of activities trigger the requirement of a banking license?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under section 31 of the Banking Companies Act, 1991, no entity may carry on banking business without obtaining a licence from Bangladesh Bank. \u201cBanking business\u201d is defined under section 5(p) of the 1991 Act as accepting deposits from the public for the purpose of lending or investment, repayable on demand or otherwise and withdrawable by cheque, draft, order or similar instruments. Accordingly, any activity involving public deposit-taking with the intention to lending or investment functions would typically trigger the licensing requirement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your regulatory regime know different licenses for different banking services?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh uses a category-based banking framework rather than separate \u201cservice licenc-es\u201d. Bangladesh Bank broadly distinguishes between Scheduled Banks and Specialised Banks. Scheduled Banks are listed by Bangladesh Bank under article 37(2)(a) of the Bangladesh Bank Order, 1972, and they provide ordinary commercial banking services. Specialised Banks are those created under statute or declared as specialised by Bangladesh Bank for specific developmental or sectoral mandates e.g. agricultural bank or microfinance bank.<\/p>\n<p>Currently, there are 62 banks divided into five sub-classes: i) State Owned Commercial Banks, ii) Specialized Banks, iii) Private Commercial Banks, iv) Digital Commercial Banks, and v) Foreign Commercial Banks. All types of banks require a license under Section 31 of the Banking Companies Act, 1991, but licenses are issued based on sub-classes for sched-uled banks, not the specific services provided.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does a banking license automatically permit certain other activities, e.g., broker dealer activities, payment services, issuance of e-money?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A banking licence does not automatically authorise other regulated financial activities. Payment services and mobile financial services are subject to separate regulatory frameworks, including the Bangladesh Payment and Settlement Systems Act, 2024 and the Bangladesh Bank Mobile Financial Services Guidelines, 2022, which generally require a bank-led structure (i.e., 51% shareholding) or specific approvals.<\/p>\n<p>Broker-dealer activities necessitate a Trading Right Entitlement Certificate from the Bangladesh Securities and Exchange Commission. Generally, these services are provided by the Bangladeshi banks through their wholly owned subsidiaries. Payment services including through mobile application does not require additional Payment Service Provider (PSP) or Payment Service Operator (PSO) license from the Bangladesh Bank but require an ap-proval.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a \"sandbox\" or \"license light\" for specific activities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh Bank has taken steps to accommodate fintech innovation through a controlled testing approach. In particular, it established a dedicated fintech facilitation function, commonly referred to as the Regulatory FinTech Facilitation Office (RFFO) (introduced in 2019), which supports pilot testing of certain fintech propositions in a measured environment. The key point is that the sandbox is not an alternative licence, and it does not displace existing statutory controls. It is a supervisory tool that allows limited trials on a case-by-case basis, typically with defined parameters, reporting expectations, and a pathway (if successful) to the relevant full authorisation route where such authorisation exists.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What regulatory restrictions or authorisation requirements apply to banks engaging in the issuance, custody or provision of services relating to cryptoassets or other digital assets?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh Bank has adopted a prohibitive stance on virtual assets and virtual currencies. The principal instrument is Bangladesh Bank (FEPD) FE Circular No. 24 dated 15 September 2022, which treats \u201cvirtual assets\u201d by reference to the Bangladesh Financial Intelligence Unit (FATF) definition and clarifies that virtual currencies are not recognised as \u201ccurrency\u201d under section 2(b)(i) of FERA 1947, and are not approved foreign exchange\/currency or approved forms of transactions\/investments within the meaning of sections 2(aa) and 2(bb) of FERA. The circular also makes clear that dealing in virtual assets\/virtual currencies (including transactions in\/from\/to Bangladesh to obtain them, facilitation of such transactions, and operations associated with exchange\/transfer\/trading) is prohibited and treated as a contravention of section 5(1)(e) of FERA 1947, and a cognizable offence under section 23(1). The foreign exchange position is reinforced by Bangladesh Bank\u2019s direction to banks to monitor and prevent transactions linked to virtual asset service providers, including through BRPD Circular Letter No. 40 dated 12 October 2022. Earlier Bangladesh Bank cautionary notices (including those issued in 2014 and 2017) are relevant context, but the 2022 circular is the clearest statement of prohibition and enforcement posture.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can cryptoassets or digital assets constitute \"deposits\" or equivalent protected funds under applicable law, and are they capable of benefiting from depositor protection, client asset safeguarding or segregation regimes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Cryptoassets are not recognised as deposits or protected funds under Bangladesh law. Given the express prohibition and non-recognition under the FERA framework (as reflected in FE Circular No. 24 dated 15 September 2022), cryptoassets would not fall within the concept of protected deposits. Depositor protection in Bangladesh is tied to deposits held with licensed banks and is supported by the statutory deposit insurance regime. As cryptoassets are not lawful deposit instruments and are not treated as approved currency\/foreign exchange or approved investment forms for this purpose, they do not sit within deposit insurance, client money protection, or segregation regimes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If cryptoassets are held by the licensed entity, what are the related capital requirements (risk weights, etc.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As banks are not permitted to hold or deal in virtual assets under the current framework es-tablished by the Foreign Exchange Regulation Act, 1947 and Bangladesh Bank circulars, there is no applicable capital treatment or risk-weighting regime for such exposures. Any in-stance of a bank directly holding such assets would, on the regulator\u2019s stated approach, raise compliance concerns rather than a question of calibrated capital charges.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the general application process for bank licenses and what is the average timing?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Applications for bank licences are submitted to Bangladesh Bank under the Banking Com-panies Act, 1991 on an invitation for application for license published by the Bangladesh Bank. Applicants must provide feasibility report, capital plans, ownership structures, governance frameworks and business projections. Bangladesh Bank conducts stringent fit-and-proper assessments of sponsors, directors and proposed management under its prudential guidelines. The process is discretionary and typically takes several months to over a year, depending on regulatory priorities and completeness of the submission.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent may foreign or overseas banks conduct cross-border banking activities into the jurisdiction without establishing a local presence or obtaining local authorisation, and what limitations or conditions apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Cross-border activities are closely monitored and are generally permissible depending on the nature of the activity. In most cases, such activities fall within the regulatory scope of the Foreign Exchange Regulation Act, 1947 and the circulars, guidelines and directions is-sued by Bangladesh Bank from time to time. Without a local presence and obtaining a li-cense, banking businesses i.e. accepting deposit fort he purpose of investment etc. cannot be carried out by a foreign or overseas bank. But remittance of foreign exchange to and from Bangladesh can be carried out through authorized dealers operating in Bangladesh.<\/p>\n<p>As a general rule, Bangladesh imposes little to no restriction on inward remittances, that is, funds remitted into Bangladesh from abroad, subject of course to applicable anti-money laundering and counter-terrorism financing checks. Outward remittances, on the other hand, remain tightly regulated. Under the Foreign Exchange Regulation Act, 1947, any out-ward remittance requires either general or special permission from Bangladesh Bank. Bangladesh Bank has, over time, granted general permissions for specified categories of inward and outward remittances through circulars and guidelines. Where a transaction does not fall within those general permissions, specific approval must be obtained.<\/p>\n<p>Foreign investment into Bangladesh is broadly permitted, save for a limited number of restricted sectors, such as arms and ammunition, nuclear power, security printing and similar sensitive industries. By contrast, investment by Bangladeshi residents into foreign jurisdictions generally requires prior approval from Bangladesh Bank. In recent years, Bangladesh Bank has, however, allowed certain export-oriented companies to make overseas investments on a case-by-case basis.<\/p>\n<p>Cross-border lending and borrowing are permitted with regulatory approval. Foreign banks and financial institutions may lend to Bangladeshi entities, subject to interest rate caps, tenure restrictions and other prudential conditions. External commercial borrowing is governed by Bangladesh Bank\u2019s relevant foreign borrowing guidelines.<\/p>\n<p>In specific situations, such as export finance, local banks may extend credit to overseas businesses, but typically only with prior approval from Bangladesh Bank. Similarly, residents in Bangladesh are not permitted to maintain deposits with foreign banks without such approval.<\/p>\n<p>Foreign banks are not permitted to accept deposits from Bangladeshi residents unless they operate through a licensed branch in Bangladesh and hold a banking licence from Bangladesh Bank. Certain limited exceptions exist, including operations conducted through Off-shore Banking Units dealing exclusively in foreign exchange.<\/p>\n<p>Cross-border remittance services are permitted, but must be routed through authorised channels, such as licensed banks, exchange houses, or approved mobile financial service providers. As a general principle, offshore digital banking or fintech platforms cannot pro-vide services directly to Bangladesh residents without establishing a local presence and obtaining the necessary regulatory approvals.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What legal forms are permitted to operate banks in the jurisdiction (e.g. public company, private company, subsidiary or branch), and what are the key regulatory considerations associated with each structure?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A banking company must generally be a public limited company incorporated in Bangladesh and licensed under section 31 of the Banking Companies Act, 1991, subject to Bangladesh Bank\u2019s establishment guidelines, including minimum paid-up capital requirements. The Guidelines to Establish a Banking Company in Bangladesh prescribe a minimum paid-up capital threshold (commonly referenced as BDT 4 billion for commercial banks) and typically envisage equity financing through ordinary shares. While the bank may operate as a non-listed public company initially, the Bangladesh Bank imposes condition for listing with the stock exchanges within 3 years of commercial operation.<\/p>\n<p>Foreign banks may operate through licensed branches, subject to Bangladesh Bank licensing requirements and, in practice, necessary establishment permissions (including the branch office approval framework administered through investment\/establishment regulators).<\/p>\n<p>Specialised banks are typically created through statute and are then brought within Bangladesh Bank\u2019s supervisory and licensing perimeter.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the jurisdiction impose any structural separation or ring-fencing requirements on banks or banking groups, and what practical challenges do these create for group structures and operations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh does not operate a formal ring-fencing regime comparable to some developed markets. However, the Banking Companies Act, 1991 imposes structural con-straints that function as de facto ring-fencing tools. These include limits on the size and composition of boards, restrictions on concentrated shareholdings, and constraints around related party exposure and group influence. The 1991 Act also contains re-strictions on board compositions intended to limit concentration of banking, insurance and non-banking financial businesses within the same group of persons and restrict certain cross-holdings and board overlaps, which in practice can shape group structuring decisions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What governance, risk management and internal control requirements apply to banks, including expectations regarding board composition, management oversight, committee structures and organisational culture?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh Bank expects banks to maintain robust governance and internal control systems, typically including independent audit and risk functions, properly constituted board committees, and clear accountability lines. The legal backbone sits in the Banking Compa-nies Act, 1991, including provisions dealing with board composition constraints (including limitations relevant to total number directors that a banking company may have, maximum shareholding percentage by a shareholder, and family representation) and the fit-and-proper expectations applied by Bangladesh Bank. Supervision is reinforced by Bangladesh Bank\u2019s periodic circulars and inspection practices aimed at transparency, financial stability and risk management discipline.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What operational resilience requirements apply to banks, including expectations relating to critical or important business services, impact tolerances, and the management of operational disruptions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Operational resilience is principally addressed through Bangladesh Bank\u2019s ICT security and continuity expectations, including cybersecurity governance, disaster recovery arrange-ments, and reporting obligations around significant incidents. While Bangladesh does not articulate \u201cimpact tolerances\u201d in the same way as certain UK\/EU regimes, supervisory practice expects banks to maintain continuity for critical services and to evidence preparedness through documented frameworks and periodic testing, consistent with Bangladesh Bank\u2019s ICT and cyber-related circulars and supervisory communications.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What regulatory expectations apply to banks\u2019 outsourcing arrangements, including the use of cloud service providers and reliance on critical third-party service providers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Outsourcing is permitted, but banks remain responsible for outsourced functions and must ensure confidentiality, audit access, data governance and operational continuity. Bangladesh Bank\u2019s ICT and risk governance expectations apply particularly strongly where out-sourcing involves core banking systems, customer data processing or other critical services. Cloud adoption is not prohibited as a concept, but banks must demonstrate compliance with applicable Bangladesh Bank ICT security directions, contractual audit\/access rights, and controls around data confidentiality and continuity.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How do environmental, social and governance (ESG) and climate-related regulatory requirements affect banks, including governance, risk management, disclosures and prudential supervision?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh Bank has progressively developed sustainable finance and environmental risk expectations through its green banking and sustainable finance policy guidance (GBCSRD Circular No-04 dated August 11, 2013). Banks are generally expected to integrate environ-mental and social considerations into credit assessment (especially for large industrial financing), to maintain and report on green finance portfolios, and to embed climate and sustainability considerations into governance and risk management frameworks to the extent required by Bangladesh Bank\u2019s policy instruments and supervisory expectations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What regulatory restrictions or requirements apply to banks' remuneration policies, including bonus caps, deferral, malus and clawback, and how are these enforced in practice?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh Bank has issued directions and guidance affecting remuneration of key bank executives, most notably chief executive officers. The regulatory approach is typically approval-based and benchmarked. In practice, factors considered include the bank\u2019s financial condition, scale and complexity, business volume and earning capacity, and the executive\u2019s qualifications and experience, alongside peer comparison. While not framed as a formal bonus cap regime, remuneration is a live supervisory topic and can attract regulatory scrutiny.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has your jurisdiction implemented the Basel III framework with respect to regulatory capital? Are there any major deviations, e.g., with respect to certain categories of banks?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Basel III capital standards have been fully implemented in Bangladesh since 2019. Under Bangladesh Bank\u2019s prudential framework, scheduled banks are currently required to main-tain a minimum capital of BDT 4 billion or a capital to risk-weighted assets ratio (CRAR) of 10%, whichever is higher. In addition to the minimum CRAR, a Capital Conservation Buffer (CCB) of 2.5% of total risk-weighted assets must be maintained, and this buffer is required to be held in the form of Common Equity Tier 1 (CET1) capital. Banks are also expected to maintain internal processes for assessing overall capital adequacy in light of their specific risk profiles, and to ensure capital levels remain above the regulatory minimum where nec-essary. Separately, certain policy measures have allowed defaulters to reschedule classified loans with a reduced down payment requirement of 2% of the outstanding balance, compared to the earlier 10\u201350% range.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any requirements with respect to the leverage ratio?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh Bank has adopted a phased increase of the minimum Tier-1 leverage ratio from 3% to 4% by 2026 under its Basel III implementation. As of the current regulatory position, no further increase beyond the 4% threshold has been formally announced.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What liquidity requirements apply? Has your jurisdiction implemented the Basel III liquidity requirements, including regarding LCR and NSFR?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to the Banking Regulation and Policy Department Circular No. 18\/2014, banks have to maintain the minimum standard Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). The minimum standard for LCR shall be greater than or equal to 100, and for NSFR, it shall be greater than 100. It has been implemented in line with the Basel III Framework.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which different sources of funding exist in your jurisdiction for banks from the national bank or central bank?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh Bank provides liquidity support through standing facilities and also operates re-finance schemes and directed refinancing for policy priority sectors. These include repo transactions, standing liquidity facilities, assured liquidity support, special liquidity assis-tance, Islamic liquidity facilities, and refinance schemes. Access, pricing and eligibility are governed by Bangladesh Bank\u2019s monetary policy stance and relevant refinance circulars and operational instructions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do banks have to publish their financial statements? Is there interim reporting and, if so, in which intervals?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>All the scheduled banks in Bangladesh are required to publish their annual audited financial statements to the Bangladesh Bank within 1 month from the date of finalisation of the same as per the FSD Circular No. 01 dated 28.05.2013 issued by the Bangladesh Bank. Similarly, the scheduled banks are also required to submit their half-yearly audited financial state-ments to the Bangladesh Bank within 1 month from the date of finalisation of such half-yearly audited financial statements. The public listed banking companies are required to publish their quarterly un-audited financial statements to the member of the public, the securities and exchange commission and to the stock exchanges.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does consolidated supervision of a bank exist in your jurisdiction? If so, what are the consequences?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A dedicated department within Bangladesh Bank, namely the Integrated Supervision Man-agement Department (ISMD), is tasked with the consolidated supervision of banks through the Integrated Supervision System. Through this framework, Bangladesh Bank monitors the financial condition and risk position of banks on an ongoing basis. The ISMD was estab-lished in 2014. Subsequently, through ISMD Circular No. 1 dated 7 September 2020, Bang-ladesh Bank directed all scheduled banks to submit branch-wise classified loan statements on a quarterly basis. Banks are also required to submit their annual audit reports to the ISMD within 15 days of finalisation.<\/p>\n<p>Upon receipt of these submissions, Bangladesh Bank may review and verify the reported figures. Where discrepancies or regulatory concerns are identified, Bangladesh Bank may initiate action under section 109 of the Banking Companies Act, 1991, which may include the imposition of monetary penalties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What reporting and\/or approval requirements apply to the acquisition of shareholdings in, or control of, banks?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Ownership and control are regulated under the Banking Companies Act, 1991, including re-strictions around significant shareholding and concentrated ownership. Prior Bangladesh Bank approval is required for acquisition of significant shareholding, and the Act defines \u201csignificant shareholding\u201d as holdings exceeding 5% of ownership by any person\/entity (including family aggregation concepts). The Act also contains a general restriction on holding more than 10% shares (directly or indirectly, singly or jointly) by any individual, establishment, company, or members of the same family, subject to regulatory treatment and potential relaxation in joint venture scenarios under Bangladesh Bank establishment guide-lines.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your regulatory regime impose conditions for eligible owners of banks (e.g., with respect to major participations)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Banking Companies Act of 1991 restricts the concentration of the shares of a bank on any individual, establishment, company or member of the same family. By virtue of such provision, the said persons cannot hold more than 10% of a bank company even if they are eligible by other means. Under section 15(6) of the Banking Companies Act, 1991 lists eligi-bility\/ineligibility criteria for a director or a chief executive. It includes, among others, (a) minimum 10 years of experience as a business person, manager or professional; (b) convicted of a criminal offence; (c) adverse finding by a competent court in a criminal case or civil case; (d) a loan defaulter or who has been declared a bankrupt; (e) punished by a financial regulator for violation of any laws, rules or regulations;<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there specific restrictions on foreign shareholdings in banks?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no blanket statutory prohibition on foreign shareholding in banks, but foreign own-ership remains subject to Bangladesh Bank approval, the statutory concentration limits un-der the Banking Companies Act, and the applicable establishment and foreign exchange frameworks. Bangladesh Bank establishment guidelines contemplate that ownership ceilings may be treated flexibly in structured joint venture setups involving foreign financial institutions, subject to regulatory approval.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a special regime for domestic and\/or globally systemically important banks?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh has not formally implemented a distinct domestic or globally systemically im-portant banks regime akin to certain international frameworks. In practice, larger banks may attract heightened supervisory intensity through Bangladesh Bank\u2019s departmental supervision and risk-based focus, aimed at mitigating systemic stress.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the sanctions the regulator(s) can order in the case of a violation of banking regulations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh Bank has a wide enforcement toolkit under the Banking Companies Act, 1991, including fines, directives, supervisory interventions, and, in serious cases, suspension\/cancellation of licences and steps towards acquisition or winding up through the appropriate legal processes. Violations of certain statutory provisions may also carry criminal consequences (imprisonment and\/or fines) depending on the breach.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How active are banking regulators in enforcement against banks and senior individuals, and what recent trends can be observed in supervisory or enforcement action?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The high-yield segment is gradually becoming more integrated into Bangladesh\u2019s banking and finance landscape, creating alternative funding avenues for businesses that may not fall within the traditional credit profile of commercial banks.<\/p>\n<p>Digitalisation has also emerged as a defining trend in the sector. While expanding credit ac-cess to rural and underserved areas remains a priority, banks, with the encouragement of Bangladesh Bank, have increasingly partnered with technology providers to offer digital channels and online lending solutions. This shift is driven in part by the growing adoption of digital banking and Mobile Financial Services (MFS), particularly among younger and more technology-oriented users.<\/p>\n<p>Islamic finance products, particularly Shari\u2019a-compliant lending structures, continue to gain traction in the market. This reflects both the socioeconomic context of the country and the demand for faith-based financial solutions among a predominantly Muslim population.<\/p>\n<p>Bangladesh Bank has also introduced targeted refinance schemes at concessional rates to support the participation of women entrepreneurs in the CMSME sector, as part of its broader financial inclusion and development objectives.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are client\u2019s assets and cash deposits protected?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh operates a statutory depositor protection mechanism through its deposit insurance system under the Bank Deposit Insurance Act, 2000, providing very limited coverage per depositor per bank for qualifying deposits held with licensed banks.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What recovery and\/or resolution planning obligations apply to banks, and how are recovery and\/or resolution plans reviewed and assessed by supervisory authorities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh does not have a standalone recovery and resolution planning regime in the form seen in certain jurisdictions. However, Bangladesh Bank has broad statutory powers to address bank distress, including making schemes for reconstruction, amalgamation or merger of a banking company under the Banking Companies Act, 1991. Supervisory review in practice is conducted through Bangladesh Bank\u2019s inspection and monitoring functions and its ability to require corrective actions and restructuring measures where risk escalates.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction know a bail-in tool in bank resolution and which liabilities are covered? Does it apply in situations of a mere liquidity crisis (breach of LCR etc.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh has not formally introduced a statutory bail-in mechanism. That said, liquidity stress is treated seriously in supervisory practice, and there are precedents in the market of regulatory action against weak institutions, including reference in the 2025 position to winding up of a non-scheduled bank linked to liquidity maintenance failures and regulatory initiatives around consolidation\/merger discussions as a stability tool. These measures are not a bail-in regime, but they illustrate Bangladesh Bank\u2019s crisis-response posture.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a requirement for banks to hold gone concern capital (\"TLAC\")? Does the regime differentiate between different types of banks?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh does not have a formal TLAC regime comparable to the Financial Stability Board approach for globally systemically important banks. Loss absorbency is instead ad-dressed through the Basel III capital adequacy framework administered by Bangladesh Bank.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a special liability or responsibility regime for managers of a bank (e.g. a \"senior managers regime\")?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh does not operate a formal Senior Managers and certification regime model. However, Bangladesh Bank applies fit-and-proper requirements, and directors and senior executives can face personal accountability under the Banking Companies Act, prudential directions and other applicable legal frameworks depending on the breach.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What regulatory, supervisory or market developments are likely to have the most significant impact on the banking sector in the jurisdiction over the next 12 to 18 months?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The sector is likely to remain shaped by supervisory focus on governance discipline, asset quality and prudential compliance, alongside a continued push towards digitalisation (including MFS adoption and digital banking models within the regulated perimeter). Sustainable finance and climate-risk expectations are likely to deepen through Bangladesh Bank policy measures. Bangladesh Bank is also likely to maintain its current restrictive position on virtu-al assets while supporting blockchain or technology-led efficiency initiatives through con-trolled, regulator-led frameworks such as the fintech facilitation\/sandbox approach.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4222<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/130102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=130102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}