Dhaka, Bangladesh (BBN) - The central bank has amended key provisions of its directive on Offshore Banking Units (OBUs) of scheduled banks to facilitate the country’s foreign trade, officials said.
The Bangladesh Bank (BB) on Tuesday issued a notification revising the OBU guidelines, originally released on January 30, 2025, to provide greater flexibility in extending trade finance facilities through Authorized Dealer (AD) banks.
Under the revised provisions, OBUs can now extend trade loans not only through ADs of their own bank but also via ADs of other banks, subject to comprehensive risk assessment—including counterparty exposure and limit evaluation.
“Actually, it’s a major step toward enhanced interbank collaboration in offshore financing operations,” a BB senior official said, adding that the latest amendment significantly widens this scope. He also noted that such financing must comply with existing prudential credit norms and due diligence requirements.
Earlier, OBUs were allowed to provide trade finance to enterprises located in both specialized and non-specialized zones through their own bank’s AD branches, in the form of buyer’s credit, accepted bill financing, and similar instruments.
For enterprises in specialized zones, OBUs are now permitted to finance entities other than fully foreign-owned ones through both their own ADs and those of other banks, using admissible trade finance instruments for the permissible tenure.
Similarly, for enterprises in non-specialized zones, OBUs can extend buyer’s credit, accepted bill financing, and other permissible trade instruments through both their own and other banks’ AD branches, subject to proper risk assessment procedures.
“By allowing OBUs to collaborate with ADs across different banks, the policy aims to ensure more efficient utilization of offshore liquidity, reduce transaction bottlenecks, and foster a more competitive financial landscape,” another central banker noted.
Industry insiders welcomed the BB’s latest move, saying the expanded framework will allow local exporters and importers to access a broader range of foreign currency financing options—particularly at a time when global trade and liquidity conditions remain volatile.
BBN/SSR/AD