Collateral Holding For Foreign Loan
Banks require no prior BB approval
Bangladesh Bank said scheduled banks would not require prior approval from the central bank to hold collaterals on behalf of their overseas bank branches or correspondents in respect of foreign borrowing by local industrial enterprises. To this end, the BB on Thursday issued a circular to authorised dealer branches of all banks saying that from now on the AD branches would not require prior permission from the central bank to hold collaterals on behalf of their overseas bank branches or correspondents against local companies’ borrowing approved by Board of Investment.
A BB official told New Age on Sunday that the central bank had recently taken initiative to relax the foreign exchange-related regulation.
As part of the move, the central bank withdrew the earlier provision to take prior permission in holding collateral securities of local industrial enterprises against their foreign borrowing, he said.
-With New Age input
