Bangladesh Bank has allowed Offshore Banking Units to provide trade finance to enterprises through authorised dealer branches of other banks, expanding credit access beyond their own bank channels.
The Foreign Exchange Policy Department issued the directive through FE Circular Letter No 34 on Monday, a Bangladesh Bank statement said.
The central bank said the changes aim to widen trade finance coverage beyond fully foreign-owned entities and enhance credit access for more businesses in both industrial and non-industrial clusters.
Under the revised rules, Offshore Banking Units can now arrange buyer’s credit, and accept bill financing and other approved trade instruments for enterprises in both specialised economic zones and non-specialised zones through AD branches of their own banks or those of other banks.
For specialised zones, the updated provision replaces paragraph D (2) of FE Circular No 11 dated 30 January 2025.
For non-specialised zones, paragraph D (3) has also been revised with the same conditions.
All financing must follow comprehensive risk assessment protocols, including counterparty exposure and limit evaluation, while fully complying with prudential credit norms and due diligence requirements.
All other instructions of the earlier circular will remain unchanged, the notice said.
The circular has been sent to managing directors and CEOs of all scheduled commercial banks and heads of Offshore Banking Units with instructions to inform relevant clients and stakeholders.
