Prudential Regulations for Banks


(amended through 2009)

Prudential Regulations for Banks, issued by the Bangladesh Bank, include prudential regulations on select subjects governing banks in Bangladesh.

The regulations cover the following topics:

  • Capital adequacy of banks;
  • Loan classification and provisioning;
  • Corporate governance in bank management;
  • Restriction on lending to directors of private banks;
  • Rules and regulations for appointment of chief executive and advisor in banks;
  • Constitution of the board of directors, and fit and proper test for appointment of bank directors and deposit director;
  • Constitution of the audit committee of the board of directors;
  • Single borrower exposure;
  • Rescheduling of loans;
  • Loan write off;
  • Large loan restructuring scheme (LLRS);
  • Requirement for obtaining information on large loan from credit information bureau;
  • Payment of dividend by bank companies;
  • Loan against shares, debentures etc.;
  • Interest rates on deposit and lending;
  • Bank charges;
  • Bank deposit insurance scheme;
  • Guidelines on managing core risks in banking
  • Credit rating;
  • Prudential guidelines for consumer financing and small enterprise financing;
  • Guideline on information and communication technology for scheduled bank; and
  • Implementation of credit risk grading manual.