The cottage, micro, small and medium enterprise (CMSME) sector has received a regulatory boost as Bangladesh Bank relaxed refinancing conditions for state-owned commercial banks and specialised banks under its ongoing support programme on Sunday.
Under the revised policy, these banks have been allowed to participate in the CMSME refinancing fund as eligible institutions.
In doing so, Bangladesh Bank has temporarily waived certain eligibility requirements that were previously applicable.
These include maintaining a maximum classified loan or investment ratio of 20 per cent, along with strict compliance with capital adequacy requirements and adherence to Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) limits.
According to the central bank, the move aims to expand credit flow to the CMSME sector and strengthen employment generation at the grassroots level.
The new instructions take immediate effect, according to the directive.
The circular was to the managing directors and CEOs of all scheduled banks and finance companies.
