BB revises Basel III NSFR reporting framework

Bangladesh Bank (BB) has revised the reporting framework for the Net Stable Funding Ratio (NSFR) under the Basel III liquidity regime, introducing changes to align regulatory reporting with the updated accounting treatment of central bank liquidity facilities, reports BSS.

The Supervisory Data Management and Analytics Department (SDAD) issued on Tuesday, amending the reporting requirements originally introduced under DOS Circular No. 01 dated January 1, 2015.

The revision follows the issuance of DMD Circular No. 02 dated February 26, 2026, which updated the guidelines for Open Market Operations (OMOs).

Under the revised framework, liquidity facilities such as Central Bank Repo (CB Repo), Standing Lending Facility (SLF), Islamic Banks Liquidity Facility (IBLF), Assured Repo and similar instruments will be reported as collateralized borrowings instead of outright sale transactions.

According to the circular, the NSFR guidance note has been updated by adding a new reporting category for collateralized borrowing or financing from the central bank. The section covering liabilities to financial institutions has also been expanded to explicitly include interbank repo transactions.

The central bank has also replaced previous debt securities categories with separate classifications for unencumbered and encumbered marketable government and Bangladesh Bank securities.