Staff Reporter :
The Bangladesh Bank has introduced a new policy allowing both individuals and businesses to obtain local currency loans by pledging foreign currency deposits held in Offshore Banking Units (OBUs) as collateral.
This development was announced in a circular issued on Thursday by the central bank’s Foreign Exchange Policy Department (FEPD). The move aims to enhance access to financing and better utilise foreign currency resources held within the country.
Under the new guidelines, non-resident Bangladeshis (NRBs) will now be able to use their OBU-based foreign currency deposits as collateral to secure loans in Bangladeshi taka.
Domestic banking units (DBUs) may extend such loans to resident individuals, firms, or companies by leveraging these foreign currency deposits, subject to certain conditions.
To utilise this facility, a formal request must be submitted by the account holder. Additionally, OBUs must verify that there is a legitimate and established relationship between the account holder and the loan recipient.
This could include ties between NRBs and their local beneficiaries, or between foreign investors and the firms in which they have invested.
The central bank’s initiative is expected to improve liquidity in the domestic market while offering greater financial flexibility to businesses and families with connections to overseas Bangladeshis.
