Published: 07:05 AM, 15 May 2026
BB relaxes single borrower, large loan exposure limits
Bangladesh Bank (BB) has relaxed the limits for single borrower and large loan exposures to facilitate international trade finance for businesses and industries. According to a recent circular issued by the central bank, the previous restriction limiting aggregate principal exposure (funded and non-funded) to a single person, counterparty, or group at 15 percent of a bank's capital has been postponed until June 30, 2028. Until that date, the exposure limit has been increased to 25 percent of the bank's capital. The move substantially increases borrowing capacity for large conglomerates, industrial groups and trading houses seeking financing from a single bank. For instance, a bank with Tk1,000 crore in capital could previously lend a maximum of Tk150 crore to one borrower group. Under the revised rule, the limit rises to Tk250 crore.
In another major relaxation, the central bank reduced the risk-weight treatment of non-funded exposures - such as letters of credit (LCs) and guarantees - for single borrower calculations. Until 30 June 2027, banks will count only 25% of the value of such facilities against their lending limits, down from the previous 50%. The change effectively frees up substantial lending capacity for trade finance activities, making it easier for banks to open import and export LCs without breaching regulatory exposure limits.
