Describe the Wholesale Borrowing Guidelines (WBG) of NBFI as per BB circular.

 Wholesale Borrowing Guidelines (WBG) is a set of guidelines developed by the Bangladesh Bank (BB) to regulate the borrowing activities of Non-Bank Financial Institutions (NBFIs). The guidelines are intended to ensure that NBFIs are able to access wholesale funding sources in a prudent and sustainable manner, without compromising the financial stability of the system. The main features of the WBG as per the BB circular are:

 1. Eligibility Criteria: The BB circular requires NBFIs to meet certain eligibility criteria before they can access wholesale funding sources. These criteria include maintaining a minimum capital requirement, complying with prudential norms on capital adequacy and asset classification, and maintaining a track record of profitability and regulatory compliance.

2. Limits on Exposure: The WBG sets limits on the amount of wholesale funding that NBFIs can raise from a single lender or group of related lenders. These limits are intended to reduce the concentration risk for both the lender and the borrower.

3. Risk Management: The BB circular requires NBFIs to have a robust risk management framework in place to manage the risks associated with wholesale borrowing. This includes a clear policy on the use of funds, adequate systems and controls to monitor and manage risks, and regular reporting to the board of directors and regulatory authorities.

4. Disclosure and Transparency: The BB circular requires NBFIs to disclose information on their wholesale borrowing activities in their financial statements, including the names of the lenders, the terms of the borrowing, and the risks associated with the borrowing.

5. Reporting Requirements: The BB circular requires NBFIs to submit periodic reports to the Bangladesh Bank on their wholesale borrowing activities, including details of their borrowing from different sources, concentration risk, and compliance with the WBG.

 Overall, the Wholesale Borrowing Guidelines (WBG) as per the BB circular are an important regulatory framework that helps to ensure that NBFIs are able to access wholesale funding sources in a sustainable and responsible manner. The guidelines help to reduce the risks associated with wholesale borrowing and promote financial stability in the system.