BB modifies provisioning requirement for banks, FIs

Bangladesh Bank (BB) has modified the provisioning requirement for the banks, Financial Institutions (FIs) and organisations in accordance with their respective counter-guarantees, reports BSS.

There will be no provisioning requirement for the BB for rating ‘grade one’ banks or FIs or organisations while 0.50 per cent for the ‘grade two’, according to a BB circular issued in the capital yesterday.

‘Grade three’ and ‘grade four’ banks or FIs or organisations will maintain 0.75 per cent provision while one percent provision for other grades, the circular added.

BB modifies provisioning requirement for banks, FIs

Bangladesh Bank (BB) has modified the provisioning requirement for the banks, Financial Institutions (FIs) and organisations in accordance with their respective counter-guarantees, reports BSS. There will be no provisioning requirement for the BB for rating grade one banks or FIs or organisations while 0.50 per cent for the grade two, according to a BB circular issued in the capital yesterday. Grade three and grade four banks or FIs or organisations will maintain 0.75 per cent provision while one percent provision for other grades, the circular added.