BB issues new policy for offshore banking operation
BSS, Dhaka
Bangladesh Bank (BB) has issued a new policy allowing banks to give fully foreign owned companies under the export processing zones (EPZs), economic zones and hi-tech parks financial services under offshore banking operation.
Under the new policy, banks can provide all financial services to fully foreign owned companies under the export processing zones (EPZs), economic zones and hi-tech parks as per the eligible terms and conditions, according to a BB circular issued in Dhaka on Monday.
But, in case of medium term and long term credit facilities, the existing terms and conditions will remain unchanged.
Without prior permission of the central bank, banks can provide short term loan to the joint venture companies of the EPZs, economic zones and hi-tech park from the offshore banking under the eligible terms and conditions.
A bank, in its offshore banking operation, may discount or purchase accepted usance or deferred bills against import from abroad on banker-customer relationship applying due diligence and arrange payment to overseas suppliers. A bank, in its offshore banking operation, may discount or purchase accepted usance or deferred export bills against direct and deemed exports of products produced in Bangladesh subject to compliance of applicable instructions.
