Written by The Banking Post
The Bangladesh Bank has relaxed its single-borrower exposure limit to support liquefied petroleum gas (LPG) imports, as concerns grow over supply disruptions linked to the Middle East conflict.
In a circular issued Tuesday, the central bank allowed banks to extend additional credit to LPG importers even if their exposure exceeds the existing 25 per cent cap—subject to prior approval.
The regulator said exposure limits will now be set on a case-by-case basis, with the relaxation remaining in effect until December 31 this year.
Officials say the move is aimed at ensuring uninterrupted LPG supply in the domestic market and preventing potential shortages amid global energy uncertainty.
Under existing rules, a bank’s total exposure to a single borrower or group cannot exceed 25 per cent of its capital, with fund-based facilities capped at 15 per cent.
The temporary relaxation signals a policy shift to prioritise energy security, allowing lenders greater flexibility to finance critical imports during a period of heightened global volatility.
