Minimum capital requirement for NBFIs:
As per department of financial institutions and markets of Bangladesh bank
circulate that
the
NBFIs to raise the paid-up capital by June 30, 2012 from Tk.50 crore to Tk. 100 crore and they would not be allowed to offer cash dividends
until they fulfilled the newly-set
paid-up capital requirement as a part of implementation of BASEL
II.
The
foreign
financial
institutions operating in
Bangladesh will also have to fulfill the same paid-up capital requirement.
[For Banks, as a part of implementation of Basel-II accord, banks are required
to maintain minimum capital to risk-weighted assets ratio at 10% of which core capital will not be less than 5% effective from December 31, 2007. However, minimum capital requirements as required under Article 13 of Banking
Companies Act, 1991 for all banks has been raised to Tk.400 crore of which the
paid up capital shall be
minimum Tk.200 crore. Banks having capital shortfall will have to meet the shortfall by august 11, 2011.]
Required reserved 6%, raised from 5.50. Effective from 15 December 2010
Financial institute is required to maintain a Cash Reserve Ratio (CRR) of 2.50%
on
its customer deposits. The CRR is maintained with the non-interest
bearing current account with the Bangladesh Bank. In addition, every financial institute is required to maintain a Statutory Liquidity reserve (SLR) of 5% (including CRR) on all its liabilities
[For Banks, the present statutory liquidity
reserve (SLR)
requirement is 20% of total demand and time liabilities, 4% of which is to be maintained as cash
reserve ratio (CRR), and the rest 16% as approved securities.
The SLR
requirement for Islamic banks is 10% and they are to keep 4% of this reserve as CRR and the rest 6% in approved securities.]