BB relaxes borrower exposure cap

FE REPORT | Published: March 26, 2026 00:19:57

The central bank has relaxed the single-borrower- exposure limit for banks to facilitate liquefied petroleum gas (LPG) import as supply concerns deepen following disruptions linked to the Iran war.
In a circular issued on Tuesday, the Bangladesh Bank (BB) said banks may extend additional credit to LPG importers even if their exposure exceeds the existing 25 per cent ceiling, subject to prior approval from the central bank.
The BB said it will determine the allowable exposure limit on a case-by-case basis until December 31 this calendar year.
The move is aimed at ensuring uninterrupted LPG import and preventing any supply disruption in the domestic market, according to BB officials.
Under the existing provisions, the total financing facilities by any bank to any single person or enterprise or organisation of a group are not to exceed 25 per cent of the bank's total capital at any point of time, subject to the condition that the maximum fund-based financing facilities (funded facilities) will be 15 per cent of its total capital base.