Bangladesh: Bangladesh Bank (BB) has relaxed several eligibility conditions for state-owned commercial and specialized banks to facilitate their participation in the Cottage, Micro, Small, and Medium Enterprise (CMSME) refinancing fund.
According to Bangladesh Sangbad Sangstha, a circular issued today by the central bank's SME and Special Programs Department (SMESPD) detailed that the decision was taken to strengthen the contribution of the CMSME sector to national economic growth and support employment generation at the grassroots level. The exemptions apply to conditions previously outlined in Section 14.4.2 of SMESPD Circular No. 01 dated March 17, 2025.
Under the revised directive, state-owned and specialized banks will no longer be required to strictly maintain a classified loan or investment ratio below 20 percent in order to qualify for the refinancing facility. The central bank has also exempted these banks from maintaining the prescribed levels of capital adequacy, Cash Reserve Ratio (CRR), and Statutory Liquidity Ratio (SLR) for participation in the CMSME refinancing scheme.
Bangladesh Bank stated that the relaxed conditions will remain effective until further notice. The instruction was issued under the authority of Section 45 of the Bank Company Act, 1991 and has come into force immediately.