BB extends tenure of relaxed ‘risk-weighted’ funding in new investment

Bangladesh Bank (BB) has moved to encourage investment in new businesses including start-ups, private capital, natural resources, real estate and infrastructure, according to an official circular from the regulator.

As part of this, the BB on Wednesday extended reduced risk-weighted (interest) or Determining Risk Weighted Asset (RWA) to 100 percent instead of 150 percent till September 30, 2024.

Such relaxation has been taken to create the opportunity of funding in reduced cost to grow new businesses and investments, which will make the economy vibrant.

The central bank reduced the risk weight on September 29 September 2020 during the adverse impact of the Covid-19 pandemic on the economy. Later, the tenure of relaxed weighted for venture capital and alternative investment sector was extended several times.

As a result, the low-cost fund has become available for start-ups, natural resources, and the real estate sector, to create new entrepreneurship opportunities.