Dhaka, Bangladesh (BBN)-Bangladesh Securities and Exchange Commission (BASEC) on Wednesday approved BDT 3.0 billion Mudaraba Subordinate Bond to be issued by the Al-Arafa Islami Bank Limited. The tenure of the bond will be seven years from the date of issuance.
By issuing the Bond, the private commercial bank will enhance its capital base to fulfill the requirement of Basel-II.
Bangladesh is now implementing the Basel-II accord to consolidate capital base of the banks in line with the international standard.
It has been prepared on the basis of three pillars: minimum capital requirement, supervisory review process and market discipline.
Three types of risks – credit risk, market risk and operational risk – have to be considered under the minimum capital requirement.