a year ago

NBFIs barred collecting credit from short-term funding

BB issues circular

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The Bangladesh Bank (BB) imposed an embargo on the non-bank financial institutions (NBFIs) to collect credit from short-term funding sources, like inter-bank transaction.

The central bank imposed the restriction by issuing a circular on Wednesday. It observed that some NBFIs are engaged in collecting funds from inter-bank transaction and making long-term investment, which is unexpected.

Instead, the BB asked the NBFIs to opt for long-term investment through issuing bond in the market, it added.

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