Compliance with Prudential Guidelines issued by Bangladesh Bank on January 2014

Sl. Coplied/
Compliance items Particulars Remarks
No. Not Complied

All scheduled banks are obligated to comply with

POLICY ON CAPITAL "Guidelines on Risk Based Capital Adequacy
1
ADEQUACY OF BANKS (RBCA) for Banks - Revised Regulatory
Framework in line with BASEL–II

Shall comply with the BRPD Circular No.14 dated

POLICY ON LOAN
September 23, 2012, BRPD Circular No.19 dated
2 CLASSIFICATION AND
December 27, 2012, and BRPD Circular No.05
PROVISIONING
dated May 29, 2013

Exposure Limits – The following limits shall apply

POLICY ON SINGLE
3 as per BRPD Circular No. 02 dated January 16,
BORROWER EXPOSURE
2014
POLICY FOR RESCHEDULING Shall comply with the BRPD Circular No. 15
4
OF LOANS dated September 23, 2012

As per BRPD Circular No. 13 dated November 07,

2013 Banks may, at any time, write off loans
classified as bad/loss for which 100% provisions
5 POLICY FOR LOAN WRITE-OFF have been kept and cases have been filed in the
court of law. However, banks may write-off
default loans below Tk 50,000 without filing suit
against the borrowers.

CORPORATE GOVERNANCE IN Shall comply BRPD Circular No. 11 dated

6
BANK MANAGEMENT October 27, 2013

FORMATION OF BOARD OF Shall comply BRPD Circular No. 11 dated

7
DIRECTORS October 27, 2013
RESPONSIBILITIES AND
Shall comply BRPD Circular No. 11 dated
8 AUTHORITIES OF BOARD OF
October 27, 2013
DIRECTORS
RESPONSIBILITIES OF THE
Shall comply BRPD Circular No. 11 dated
9 CHAIRMAN OF THE BOARD OF
October 27, 2013
DIRECTORS

Each bank company can form 1(one) executive

committee, 1(one) audit committee and 1(one) risk
FORMATION OF COMMITTIES management committee with the directors. Board
10
FROM BOARD OF DIRECTORS can’t form any other permanent,temporary or sub-
committee except the above mentioned three
committees.
 i. Members of the committee will be nominated by
the board of directors from themselves;
ii. The executive committee will comprise of
maximum 07 (seven) members;
iii. Members may be appointed for a 03 (three)-
11 EXECUTIVE COMMITTEE
year term of office;
iv. Chairman of the Board of Directors can be the
chairman of executive committee;
v. Company secretary of the bank will be the
secretary of the executive committee.

i. Members of the committee will be nominated by

12 AUDIT COMMITTEE
the board of directors from the directors;
ii. The audit committee will comprise of maximum
05 (five) members, with minimum 2 (two)
independent director;
iii. Audit committee will comprise with directors
who are not executive committee members;
iv. Members may be appointed for a 03 (three)
year term of office;
v. Company secretary of the bank will be the
secretary of the audit committee.

1. Members of the committee will be nominated

by the board of directors from themselves;
2. The Risk Management Committee will
RISK MANAGEMENT comprise of maximum 05 (five) members;
13
COMMITTEE 3. Members may be appointed for a 03 (three) year
term of office;
4. Company secretary of the bank will be the
secretary of the Risk Management Committee.

APPOINTMENT AND
Shall comply BRPD Circular Letter No-18 dated
14 RESPONSIBILITIES OF CHIEF
October 27, 2013
EXECUTIVE OFFICER

APPOINTMENT OF ADVISOR Shall comply BRPD Circular Letter No.19 dated

15
AND CONSULTANT October 27, 2013

RESTRICTION ON LENDING TO
Shall comply section 45 of the Banking
16 DIRECTORS OF PRIVATE
Companies Act, 1991
BANKS

As per BRPD Circular No. 01 dated January 10,

2004, BRPD Circular No. 04 dated April 19,
2009, BRPD Circular Letter No. 01 dated January
22, 2012 andBRPD Circular Letter No. 02 dated
February 29, 2012 ,Banks in general are free to
charge/fix their deposit and lending rate. However,
the maximum rate of interest rate on pre-shipment
INTEREST RATES ON DEPOSIT
17 export credit is 7% and the maximum rate of
AND LENDING
interest on agriculture loan is 13%. Banks are
advised to limit the difference between lending
rate and weighted average rate of interest on
deposit or intermediation spread within lower
single digit in different sectors other than high risk
consumer credit (including credit card) and SME
loans

OPERATION OF SPECIAL
Shall comply BRPD Circular No. 20 dated May
18 NOTICE DEPOSIT (SND)
16, 2010
ACCOUNT
 Shall comply BRPD Circular No. 19 dated
19 BANK CHARGES
December 21, 2009
 As per DOS Circular No. 02 dated Feb 15, 2012,
With a view to managing various risks in a prudent
manner, scheduled banks are instructed to follow
GUIDELINES ON MANAGING the Risk Management Guidelines for Banks . The
20
CORE RISKS IN BANKING document should be treated as supplement to, and
not a substitute for, existing core risks guidelines,
i.e., Risk Based Capital Adequacy, Stress Testing
and Managing banking risks in six core areas.

It is mandatory for the banks to have themselves

credit rated to raise capital from capital market
through IPO. To protect the interest of the
prospective investors, depositors and creditors and
also the bank management as a whole for their
21 CREDIT RATING
overall performances in each relevant areas
including core risks of the bank, it is also
mandatory for all banks to have themselves credit
rated by a Credit Rating Agency.

Banks were advised to implement Credit Risk

Grading (as described in the manual) by March 31,
2006 for all exposures (irrespective of amount)
IMPLEMENTATION OF CREDIT
22 other than those covered under Consumer and
RISK GRADING MANUAL
Small Enterprises financing Prudential Guidelines
and also under The Short-Term Agricultural and
Micro-Credit

PRUDENTIAL GUIDELINES
FOR CONSUMER FINANCING Shall comply BRPD Circular No. 07 dated
23
AND SMALL ENTERPRISE November 03, 2004
FINANCING

As per BRPD Circular No. 05 dated April 25,

2012, With a view to achieving targeted economic
growth through increasing credit flow to
PRUDENTIAL REGULATIONS
24 productive sector by reducing credit flow from
FOR CONSUMER FINANCING
consumer credit, it has been decided that growth of
consumer credit must not exceed the average
growth of total credit of the bank.

As per BRPD Circular No. 16 dated April 27,

2010, Banks shall not provide any loan/credit
facility for purchasing land.
As per BRPD Circular No. 02 dated April 17,
2013, All the scheduled banks are instructed to
refrain from disbursing any loan to private housing
projects which are not approved by statutory
PROHIBITION ON BANK LOAN
25 government organizations.
FOR PURCHASING LAND
As per BRPD Circular Letter No. 08 dated April
28, 2013, Banks are also required to comply with
the related acts, rules and codes and take approval
of proper authorities before financing any
residential or commercial building, establishment
or construction or land development and building,
apartment or floor space purchase.

As per BRPD Circular No. 13 dated September 09,

2012, The banks are required to obtain prior
approval from their respective head offices instead
ACCEPTANCE AND PURCHASE
26 of taking branch-level decision on inland bill
OF INLAND BILL
purchase (IBP) in both foreign and local
currencies.
 As per BRPD Circular No. 15 dated November 11,
2009, In view of some basic differences in Shariah
GUIDELINES ON ISLAMIC based Islamic Banking and interest based banking
27
BANKING BB has introduced guidelines on Islamic Banking
to bring greater transparency and ccountability and
therefore governance to the Islamic Banking

As per BRPD Circular No. 02 dated January 31,

2008, Banks are now to observe the minimum
safety and security measures at branches/places
where safe deposit lockers facilities are offered to
general public so that the security procedures are
MAINTAINING ADEQUATE well documented and the concerned staff/officers
28
SECURITY OF LOCKERS are well trained about the procedures.Besides,
corporate group insurance as per categories and
sizes of lockers are to be maintained by the banks
so that in case of any loss arising due to
breakage/damage to the lockers could be paid to
the locker holders

As per BRPD Circular No. 14 dated June 25, 2003,

The forms of financial statements of banks and
directives for preparation thereof have been
DISCLOSURE REQUIREMENTS
29 amended in line with International Accounting
FOR BANKS
Standards with a view to providing the investors,
depositors and stakeholders with transparent and
adequate idea about the bank

As per BRPD Circular No. 11 dated December 12,

2011, Deferred Tax Asset may be recognized
complying with the Bangladesh Accounting
Standards (BAS) on the expenses for which,
MAINTENANCE OF DEFFERED
30 according to the income tax law, a future tax
TAX ACCOUNTS
benefit will be received. Deferred Tax Liabilities
must be recognized for those items which are
mentioned to recognize in Bangladesh Accounting
Standards

As per BRPD Circular Letter No. 09 dated July 30,

2012, Banks are restricted to purchase floor
space/land/building or lease for a period greater
than 10 years only for its Head office purpose.
Purchasing of floor space for branch purpose is
permissible within the territory of City
Corporation only.
PURCHASES OF FIXED ASSETS
However as per BRPD Circular Letter No. 14
31 AND ACQUISITION OF
dated August 12, 2013, Banks cannot hold fixed
IMMOVABLE PROPERTIES
assets (ex: land, building, floor space etc.) more
than 30% of their paid
up capital. Banks which are holding fixed assets
more than 30% of their paid up capital are also
instructed to increase their paid up capital
proportionately and not to acquire any more fixed
assets till reaching the mark

As per BRPD Circular Letter No. 02 dated January

16 , 2014, The banks will be able to purchase
motor vehicles (sedan car) costing up to Tk 50
Lac, while Jeep (sports utility vehicle) up to Tk 1
AVOIDANCE OF HIGH
Crore. However, bank companies can purchase
32 EXPENSE FOR LUXURIOUS
security
VEHICLES AND DECORATION
vehicles or similar ones used by security agencies
for carrying remittances. Banks cannot purchase
vehicles through lease financing from other bank
companies and financial institutions.

ESTABLISHMENT OF
33 BUSINESS CENTERS BY
BANKS
BRPD Circular Letter No. 13 dated December 22,
2011 and BRPD Circular No. 18 dated November
29, 2012, In order to provide banking services to
the under privileged people urban and rural
branches will be 1 : 1.

BRPD Circular Letter No. 03 dated June 27, 2014,

Banks have to set up security-tested doors for the
PRECAUTIONARY MEASURES vault’s room and take certificate from civil
34 TO ENSURE SAFETY OF THE engineers on the strengthening of the vault room’s
BANK-VAULTS roof and floor. The banks will have to set up close
circuit camera and maintain alarming system in the
banks’ vault room

GUIDELINES FOR BANKING

Shall comply BRPD Circular No. 10 dated
35 SERVICES AT CUSTOMER
November 30, 2011
PREMISES

As per BRPD Circular Letter No. 01 dated March

28, 2013, Banks are instructed to set the duration
DURATION OF MATERNITY
of maternity leave for any female bank employee
36 LEAVE FOR FEMALE BANK
to a period of six months from the date of
EMPLOYEES
commencement of the leave or her confinement
for the purpose of delivery, whichever is earlier.

As per BRPD Circular No. 08 dated June 23, 2013,

To keep the banks abreast of the governmental
practice of limiting the fresh applicants’ age at 30,
AGE LIMIT FOR BANK-JOB all the scheduled banks are instructed to comply
37
APPLICANTS with this nationwide accepted norm. The banks are
advised to keep the age limit for the fresh
candidates at 30(thirty) instead of determining it
from their own discretion

The Bank Deposit insurance Act, 2000 established

the rules governing the role of insurer, the level of
BANK DEPOSIT INSURANCE coverage provided and the laws governing the
38
SCHEME payments in event of a bank failure.Under the law
deposits of all scheduled banks are insured up to
BDT 100,000 per depositor.
 Complied/
Sl No. Supporting Documents Particulars Doc. Ref Status Remarks (if required)
Non complied

1 POLICY ON CAPITAL ADEQUACY OF BANKS

2 POLICY ON LOAN CLASSIFICATION AND PROVISIONING
3 POLICY ON SINGLE BORROWER EXPOSURE
4 POLICY FOR RESCHEDULING OF LOANS
5 POLICY FOR LOAN WRITE-OFF
6 CORPORATE GOVERNANCE IN BANK MANAGEMENT
7 FORMATION OF BOARD OF DIRECTORS
8 RESPONSIBILITIES AND AUTHORITIES OF BOARD OF DIRECTORS
9 RESPONSIBILITIES OF THE CHAIRMAN OF THE BOARD OF DIRECTORS
10 FORMATION OF COMMITIES FROM BOARD OF DIRECTORS
11 EXECUTIVE COMMITTEE
12 AUDIT COMMITTEE
13 RISK MANAGEMENT COMMITTEE
14 APPOINTMENT AND RESPONSIBILITIES OF CHIEF EXECUTIVE OFFICER
15 APPOINTMENT OF ADVISOR AND CONSULTANT
16 RESTRICTION ON LENDING TO DIRECTORS OF PRIVATE BANKS
17 INTEREST RATES ON DEPOSIT AND LENDING
18 OPERATION OF SPECIAL NOTICE DEPOSIT (SND) ACCOUNT
19 BANK CHARGES
20 GUIDELINES ON MANAGING CORE RISKS IN BANKING
21 CREDIT RATING
22 IMPLEMENTATION OF CREDIT RISK GRADING MANUAL
23 PRUDENTIAL GUIDELINES FOR CONSUMER FINANCING AND SMALL ENTERPRISE
24 FINANCING
25 PRUDENTIAL REGULATIONS FOR CONSUMER FINANCING
26 PROHIBITION ON BANK LOAN FOR PURCHASING LAND
27 ACCEPTANCE AND PURCHASE OF INLAND BILL
28 GUIDELINES ON ISLAMIC BANKING
29 MAINTAINING ADEQUATE SECURITY OF LOCKERS
30 DISCLOSURE REQUIREMENTS FOR BANKS
31 MAINTENANCE OF DEFFERED TAX ACCOUNTS
32 PURCHASES OF FIXED ASSETS AND ACQUISITION OF IMMOVABLE PROPERTIES
33 AVOIDANCE OF HIGH EXPENSE FOR LUXURIOUS VEHICLES AND DECORATION
34 ESTABLISHMENT OF BUSINESS CENTERS BY BANKS
35 PRECAUTIONARY MEASURES TO ENSURE SAFETY OF THE BANK-VAULTS
36 GUIDELINES FOR BANKING SERVICES AT CUSTOMER PREMISES
37 DURATION OF MATERNITY LEAVE FOR FEMALE BANK EMPLOYEES
38 AGE LIMIT FOR BANK-JOB APPLICANTS
39 BANK DEPOSIT INSURANCE SCHEME
 Prudeintial Guideline
Bangladesh Bank
Checklist for Bank Audit PRUDENTIAL REGULAT IONS FOR BANKS.pdf

Complied/
SL. Circular
Compliance items Particulars Not complied
No. Reference

All scheduled banks are obligated to comply with "Guidelines on Risk

POLICY ON CAPITAL ADEQUACY OF
1 Based Capital Adequacy (RBCA) for Banks - Revised Regulatory
BANKS
Framework in line with BASEL–II
Shall comply with the BRPD Circular No.14 dated September 23, 2012,
POLICY ON LOAN CLASSIFICATION
2 BRPD Circular No.19 dated December 27, 2012, and BRPD Circular
AND PROVISIONING sep232012brpd14e.pdf dec272012brpd19e.pdf may292013brpd06e.pdf
No.05 dated May 29, 2013
POLICY ON SINGLE BORROWER Exposure Limits – The following limits shall apply as per BRPD Circular
3
EXPOSURE No. 02 dated January 16, 2014 jan162014brpd02e_new.pdf

POLICY FOR RESCHEDULING OF

4 Shall comply with the BRPD Circular No. 15 dated September 23, 2012
LOANS sep232012brpd15e.pdf

As per BRPD Circular No. 13 dated November 07, 2013 Banks may, at any
time, write off loans classified as bad/loss for which 100% provisions have
5 POLICY FOR LOAN WRITE-OFF been kept and cases have been filed in the court of law. However, banks
may write-off default loans below Tk. 50,000 without filing suit against the nov072013brpd13.pdf
borrowers.
CORPORATE GOVERNANCE IN BANK
6 Shall comply BRPD Circular No. 11 dated October 27, 2013
MANAGEMENT

7 FORMATION OF BOARD OF DIRECTORS Shall comply BRPD Circular No. 11 dated October 27, 2013

RESPONSIBILITIES AND AUTHORITIES

8 Shall comply BRPD Circular No. 11 dated October 27, 2013
OF BOARD OF DIRECTORS

oct272013brpd11.pdf
 Prudeintial Guideline
Bangladesh Bank
Checklist for Bank Audit
9
RESPONSIBILITIES OF THE CHAIRMAN
OF THE BOARD OF DIRECTORS
Shall comply BRPD Circular No. 11 dated October 27, 2013
FORMATION OF COMMITIES FROM
10
BOARD OF DIRECTORS
11 EXECUTIVE COMMITTEE
12 AUDIT COMMITTEE
PRUDENTIAL REGULAT IONS FOR BANKS.pdf
oct272013brpd11.pdf
Each bank company can form 1(one) executive committee, 1(one) audit
committee and 1(one) risk management committee with the directors.
K:\HVC_UCBL_15\
Board can’t form any other permanent,temporary or sub- committee except Draft_Reports\Ref_pdf\Bank
the above mentioned three committees.
i. Members of the committee will be nominated by the board of directors
from themselves;
ii. The executive committee will comprise of maximum 07 (seven)
members;
iii. Members may be appointed for a 03 (three)-year term of office;
iv. Chairman of the Board of Directors can be the chairman of executive
committee;
v. Company secretary of the bank will be the secretary of the executive
committee.
i. Members of the committee will be nominated by the board of directors
from the directors;
ii. The audit committee will comprise of maximum 05 (five) members,
with minimum 2 (two) independent director;
iii. Audit committee will comprise with directors who are not executive
committee members;
iv. Members may be appointed for a 03 (three) year term of office;
v. Company secretary of the bank will be the secretary of the audit
committee.
 Prudeintial Guideline
Bangladesh Bank
Checklist for Bank Audit
13 RISK MANAGEMENT COMMITTEE
APPOINTMENT AND RESPONSIBILITIES
14
OF CHIEF EXECUTIVE OFFICER
APPOINTMENT OF ADVISOR AND
15
CONSULTANT
RESTRICTION ON LENDING TO
16
DIRECTORS OF PRIVATE BANKS
INTEREST RATES ON DEPOSIT AND
17
LENDING
OPERATION OF SPECIAL NOTICE
18
DEPOSIT (SND) ACCOUNT
19 BANK CHARGES
PRUDENTIAL REGULAT IONS FOR BANKS.pdf
1. Members of the committee will be nominated by the board of directors
from themselves;
2. The Risk Management Committee will comprise of maximum 05 (five)
members;
3. Members may be appointed for a 03 (three) year term of office;
4. Company secretary of the bank will be the secretary of the Risk
Management Committee.
Shall comply BRPD Circular Letter No-18 dated October 27, 2013
oct272013brpdl18.pdf
Shall comply BRPD Circular Letter No.19 dated October 27, 2013
oct272013brpdle19.pdf
Shall comply section 45 of the Banking Companies Act, 1991 K:\ HVC_UCBL_15\
Draft_Reports\Ref_pdf\bank
As per BRPD Circular No. 01 dated January 10, 2004, BRPD Circular
No. 04 dated April 19, 2009, BRPD Circular Letter No. 01 dated January
22, 2012 andBRPD Circular Letter No. 02 dated February 29, 2012 ,Banks jan2 2012brpdl01e.pdf
in general are free to charge/fix their deposit and lending rate. However,
the maximum rate of interest rate on pre-shipment export credit is 7% and
the maximum rate of interest on agriculture loan is 13%. Banks are advised
to limit the difference between lending rate and weighted average rate of
jan10 4brpd01.pdf apr19209brpd04.pdf feb29012brpdl02.pdf
interest on deposit or intermediation spread within lower single digit in
different sectors other than high risk consumer credit (including credit
card) and SME loans
Shall comply BRPD Circular No. 20 dated May 16, 2010
may162010brpd20.pdf
Shall comply BRPD Circular No. 19 dated December 21, 2009 dec222009brpd19. pdf
 Prudeintial Guideline
Bangladesh Bank
Checklist for Bank Audit
GUIDELINES ON MANAGING CORE
20
RISKS IN BANKING
21 CREDIT RATING
IMPLEMENTATION OF CREDIT RISK
22
GRADING MANUAL
PRUDENTIAL GUIDELINES FOR
23 CONSUMER FINANCING AND SMALL
ENTERPRISE FINANCING
PRUDENTIAL REGULATIONS FOR
24
CONSUMER FINANCING
PRUDENTIAL REGULAT IONS FOR BANKS.pdf
As per DOS Circular No. 02 dated Feb 15, 2012, With a view to managing
various risks in a prudent manner, scheduled banks are instructed to follow
the Risk Management Guidelines for Banks . The document should be
treated as supplement to, and not a substitute for, existing core risks
guidelines, i.e., Risk Based Capital Adequacy, Stress Testing and
Managing banking risks in six core areas. feb152012dos02e.pdf
It is mandatory for the banks to have themselves credit rated to raise
capital from capital market through IPO. To protect the interest of the
prospective investors, depositors and creditors and also the bank
management as a whole for their overall performances in each relevant
areas including core risks of the bank, it is also mandatory for all banks to
have themselves credit rated by a Credit Rating Agency.
Banks were advised to implement Credit Risk Grading (as described in the
manual) by March 31, 2006 for all exposures (irrespective of amount)
other than those covered under Consumer and Small Enterprises financing
Prudential Guidelines and also under The Short-Term Agricultural and
Micro-Credit
Shall comply BRPD Circular No. 07 dated November 03, 2004
BRPD Circular 7_03.11.2004.pdf
As per BRPD Circular No. 05 dated April 25, 2012, With a view to
achieving targeted economic growth through increasing credit flow to
productive sector by reducing credit flow from consumer credit, it has been
apr252012brpd05.pdf
decided that growth of consumer credit must not exceed the average
growth of total credit of the bank.
 Prudeintial Guideline
Bangladesh Bank
Checklist for Bank Audit
PROHIBITION ON BANK LOAN FOR
25
PURCHASING LAND
ACCEPTANCE AND PURCHASE OF
26
INLAND BILL
27 GUIDELINES ON ISLAMIC BANKING
PRUDENTIAL REGULAT IONS FOR BANKS.pdf
As per BRPD Circular No. 16 dated April 27, 2010, Banks shall not
provide any loan/credit facility for purchasing land.
As per BRPD Circular No. 02 dated April 17, 2013, All the scheduled
banks are instructed to refrain from disbursing any loan to private housing
projects which are not approved by statutory government organizations.
As per BRPD Circular Letter No. 08 dated April 28, 2013, Banks are also
required to comply with the related acts, rules and codes and take approval
of proper authorities before financing any residential or commercial apr272010brpd16.pdf
building, establishment or construction or land development and building,
apartment or floor space purchase.
As per BRPD Circular No. 13 dated September 09, 2012, The banks are
required to obtain prior approval from their respective head offices instead
of taking branch-level decision on inland bill purchase (IBP) in both
sep092012brpd13.pdf
foreign and local currencies.
As per BRPD Circular No. 15 dated November 11, 2009, In view of some
basic differences in Shariah based Islamic Banking and interest based
banking BB has introduced guidelines on Islamic Banking to bring greater
transparency and ccountability and therefore governance to the Islamic nov092009brpd15e.pdf
Banking
 Prudeintial Guideline
Bangladesh Bank
Checklist for Bank Audit PRUDENTIAL REGULAT IONS FOR BANKS.pdf

As per BRPD Circular No. 02 dated January 31, 2008, Banks are now to
observe the minimum safety and security measures at branches/places
where safe deposit lockers facilities are offered to general public so that the
MAINTAINING ADEQUATE SECURITY security procedures are well documented and the concerned staff/officers
28
OF LOCKERS are well trained about the procedures.Besides, corporate group insurance as
per categories and sizes of lockers are to be maintained by the banks so jan3108brpd02e.pdf
that in case of any loss arising due to breakage/damage to the lockers could
be paid to the locker holders

As per BRPD Circular No. 14 dated June 25, 2003, The forms of financial
statements of banks and directives for preparation thereof have been
DISCLOSURE REQUIREMENTS FOR
29 amended in line with International Accounting Standards with a view to
BANKS
providing the investors, depositors and stakeholders with transparent and
adequate idea about the bank jun2503brpd14e.pdf
As per BRPD Circular No. 11 dated December 12, 2011, Deferred Tax
Asset may be recognized complying with the Bangladesh Accounting
MAINTENANCE OF DEFFERED TAX Standards (BAS) on the expenses for which, according to the income tax
30
ACCOUNTS law, a future tax benefit will be received. Deferred Tax Liabilities must be
recognized for those items which are mentioned to recognize in dec122011brpd11e.pdf
Bangladesh Accounting Standards

jul3021brpdl09.pdf
 Prudeintial Guideline
Bangladesh Bank
Checklist for Bank Audit
PURCHASES OF FIXED ASSETS AND
31 ACQUISITION OF IMMOVABLE
PROPERTIES
AVOIDANCE OF HIGH EXPENSE FOR
32 LUXURIOUS VEHICLES AND
DECORATION
ESTABLISHMENT OF BUSINESS
33
CENTERS BY BANKS
PRECAUTIONARY MEASURES TO
34 ENSURE SAFETY OF THE BANK-
VAULTS
PRUDENTIAL REGULAT IONS FOR BANKS.pdf
As per BRPD Circular Letter No. 09 dated July 30, 2012, Banks are
restricted to purchase floor space/land/building or lease for a period greater
than 10 years only for its Head office purpose. Purchasing of floor space
for branch purpose is permissible within the territory of City Corporation
only.
However as per BRPD Circular Letter No. 14 dated August 12, 2013,
Banks cannot hold fixed assets (ex: land, building, floor space etc.) more
jul3021brpdl09.pdf aug12 013brpdl14.pdf
than 30% of their paid
up capital. Banks which are holding fixed assets more than 30% of their
paid up capital are also instructed to increase their paid up capital
proportionately and not to acquire any more fixed assets till reaching the
mark
As per BRPD Circular Letter No. 02 dated January 16 , 2014, The banks
will be able to purchase motor vehicles (sedan car) costing up to Tk 50
Lac, while Jeep (sports utility vehicle) up to Tk 1 Crore. However, bank
companies can purchase security
vehicles or similar ones used by security agencies for carrying remittances.
Banks cannot purchase vehicles through lease financing from other bank
companies and financial institutions. jan162014brpdl02.pdf
BRPD Circular Letter No. 13 dated December 22, 2011 and BRPD
Circular No. 18 dated November 29, 2012, In order to provide banking
dec222011brpdl13.pdf nov292012brpd18.pdf
services to the under privileged people urban and rural branches will be 1 :
1.
BRPD Circular Letter No. 03 dated June 27, 2014, Banks have to set up
security-tested doors for the vault’s room and take certificate from civil
engineers on the strengthening of the vault room’s roof and floor. The
banks will have to set up close circuit camera and maintain alarming jan272014brpdl03.pdf
system in the banks’ vault room
 Prudeintial Guideline
Bangladesh Bank
Checklist for Bank Audit PRUDENTIAL REGULAT IONS FOR BANKS.pdf

GUIDELINES FOR BANKING SERVICES

35 Shall comply BRPD Circular No. 10 dated November 30, 2011 nov302011brpd10.pdf
AT CUSTOMER PREMISES

As per BRPD Circular Letter No. 01 dated March 28, 2013, Banks are
DURATION OF MATERNITY LEAVE FOR instructed to set the duration of maternity leave for any female bank
36
FEMALE BANK EMPLOYEES employee to a period of six months from the date of commencement of the mar282013brpdl01.pdf
leave or her confinement for the purpose of delivery, whichever is earlier.

As per BRPD Circular No. 08 dated June 23, 2013, To keep the banks
abreast of the governmental practice of limiting the fresh applicants’ age at
AGE LIMIT FOR BANK-JOB
37 30, all the scheduled banks are instructed to comply with this nationwide
APPLICANTS
accepted norm. The banks are advised to keep the age limit for the fresh
candidates at 30(thirty) instead of determining it from their own discretion jun232013brpd08.pdf
The Bank Deposit insurance Act, 2000 established the rules governing the
role of insurer, the level of coverage provided and the laws governing the
38 BANK DEPOSIT INSURANCE SCHEME
payments in event of a bank failure.Under the law deposits of all scheduled
banks are insured up to BDT 100,000 per depositor.