DHAKA, July 3, 2025 (BSS) - Bangladesh Bank (BB) has allowed both individuals and companies in the country to secure taka-dominated loans using foreign currency deposits held in Offshore Banking Units (OBUs) as collateral.

“To facilitate financing activities, it has been decided that OBUs may allow foreign currency deposits of non-resident account-holders for use by their domestic banking units (DBUs) as collateral against financing to resident companies or firms and individuals,” said a BB circular issued today.

However, the facility comes with certain conditions.

OBUs shall satisfy themselves regarding the bonafide relations between account-holders and borrowers in Bangladesh, such as non-resident Bangladeshis (NRBs) and their beneficiaries, foreign shareholders/investors and their investee companies, etc.

The collateral shall be used by DBUs for extending short term working capital loan in local currency.

There will be no charges/fees payable for the respective collateral.

The financing should be granted to borrowers subject to margin requirements considered necessary by DBUs to absorb exchange rate risk.