BB reduces CRR to 2pc for offshore banking

BSS

19th June, 2020 04:21:16 printer

BB reduces CRR to 2pc for offshore banking

Bangladesh Bank (BB) has slashed cash reserve ratio (CRR) by 200 basis points to 2 percent only from existing level of 4 percent for the offshore banking operation (OBO) in the country.

“For the OBO, the banks are required to maintain a minimum of 2 (two) percent CRR with Bangladesh Bank on bi-weekly average basis with a provision of minimum 1.5 (one and half) percent on daily basis of the average total demand and time liabilities (ATDTL) of OBO,” as per a BB circular issued on Thursday.

The new CRR requirement rules for the OBO will be effective from July 01, 2020, the circular added.

For the maintenance of Statutory Liquidity Reserve (SLR) for OBO, total demand and time liabilities of the bank shall include the liability of OBO.

For the maintenance of CRR and SLR that entails to offshore banking, banks may use funds from offshore banking operation and convert to BDT, if required.

Currently, the banks are mandatorily maintaining a 4.0 percent CRR with the central bank from their total demand and time liabilities on a bi-weekly basis.


Top