Provisioning rules eased for bank loans to brokerage houses, stock dealers

The Bangladesh Bank today relaxed the rules on the provisioning of bank loans to brokerage houses, merchant banks, and stock dealers.

In 2012, the BB advised banks to maintain a 2 per cent general provision on the unclassified amount for loans to brokerage houses, merchant banks and stock dealers.

"Now it has been decided that banks will have to maintain a general provision of 1 per cent on unclassified amounts for loans to brokerage houses, merchant banks and stock dealers," said the BB in a notice today.

The new rate will come into force from March 30, it said.