Offshore banking: Banks asked to bring down exposure limit by 31 Dec
Banking
The banks that violated the single borrower exposure limit in offshore banking now have until 31 December to bring it down to the prescribed level.
The Banking Regulation and Policy Department of the Bangladesh Bank issued a circular in this regard on Sunday.
The single borrower exposure limit in general and offshore banking is a maximum of 25% of a bank's capital. The central bank set the deadline as the offshore units of many banks exceeded the limit.
The offshore banking policy says the funds that this unit will raise from internal sources will not exceed a maximum of 30% of a bank's capital.
Offshore banking is a bank's foreign banking unit. Offshore unit management, accounting, deposits, and loans are completely different. Only profit or loss is added to the bank's accounts at the end of the year.
No offshore banking activity is run in domestic currency. A number of foreign currencies, including the dollar, the euro, the pound, and the yen, are used.
In another circular on Sunday, the Banking Regulation and Policy Department instructed banks to adhere to the "no mask no service" slogan.
In this regard, the Bangladesh Bank directed the head offices of the banks to take necessary steps to implement the slogan in their branches.
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