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The central bank has amended key provisions of its directive on Offshore Banking Units (OBUs) of scheduled banks, aiming to facilitate the country’s foreign trade, officials said.
The Bangladesh Bank (BB) on Monday issued a notification amending the OBU guidelines, originally released on January 30, 2025, to provide greater flexibility in extending trade finance facilities through Authorized Dealer (AD) banks.
Under the revised provisions, OBUs can now extend trade loans not only through ADs of their own bank but also via ADs of other banks, subject to comprehensive risk assessment — including counterparty exposure and limit evaluation.
“Actually, it’s a major step toward enhanced interbank collaboration in offshore financing operations,” a BB senior official told The Financial Express (FE), adding that the latest amendment, however, significantly widens this scope.
He also said such financing must comply with existing prudential credit norms and due diligence requirements.
Earlier, OBUs were allowed to extend trade finance to enterprises located in both specialized and non-specialized zones through their own bank’s AD branches, in the form of buyer’s credit, accepted bill financing, and similar instruments, according to the officials.