Bangladesh Bank has raised the paid-up capital requirement for upcoming commercial banks in the country to Tk 500 crore, up from Tk 400 crore. The new regulation, outlined in a recent circular, applies to all applicants seeking licenses to establish new banks. While existing banks are exempt from this requirement, a central bank official explained that many of them face challenges in immediately meeting the higher capital base. The decision to raise the paid-up capital requirement was made prior to the COVID-19 pandemic but was delayed due to economic slowdown. The official also indicated the possibility of further increases in the future. Additionally, the central bank has established a Tk 125 crore paid-up capital requirement for digital banks, recognizing their distinct operational needs and infrastructure requirements.
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