Bangladesh Bank on Wednesday asked scheduled banks to maintain 100 per cent risk-weighted asset for unrated SME loan amounting to Tk 30 lakh and above.
To this end, the BB issued a circular to managing directors and chief executive officers of all banks asking them to maintain 75 per cent RWA for unrated small and medium enterprises loan amounting to Tk 30 lakh.
The banks earlier maintained 75 per cent RWA for all amount of unrated SME loan.
A BB official told New Age on Wednesday that the banks had to maintain different amount of RWA against their assets to calculate their capital.
As per the BB guideline, the banks have to keep at least 10 per cent capital against their RWA to absorb the external and internal financial shock.
The BB also set a RWA guideline for the SME financing of the banks.
Under the new provision, the banks will have to maintain 20 per cent RWA for SME loan if their clients attain SME 1 credit rating.
The banks will have to maintain 40 per cent RWA for SME 2 credit rating, 60 per cent for SME 3, 80 per cent for SME 4, 120 per cent for SME 5 and 150 per cent for SME 6 rating.
The BB has recently given recognition a new credit rating agency named ‘The Bangladesh Rating Agency Ltd’ only for rating the SME enterprises.
The BB official said that the banks would be encouraged to give loan to the SME clients who accomplished the rating as they (banks) would have to maintain lower RWA against a well-rated client.
-With New Age input
