Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has set call money borrowing limit for the non-banking financial institutions (NBFIs) based on their equity instead of the existing net asset.
Officials said the Bangladesh Bank (BB) has taken the latest measures aiming to enhance the NBFIs’ equity.
Under the new provisions, the equity of a NBFI will be fixed on the basis of its balance-sheet on December 31, 2016, according to a notification, issued by the central bank on Sunday.
The new provision will come into effect from February 1, it added.
Talking to BBN, a BB senior official said the NBFIs will be allowed to borrow maximum 30 per cent of their fixed equity from the inter-bank call money market from February 01 to January 31 of each year.
“We’ve already sought information from the NBFIs to fix their equity,” the central banker explained.
Currently, 33 NBFIs are doing business in the country.
BBN/SSR/AD