BB eases CMSME financing conditions for all banks, financial institutions

The Bangladesh Bank (BB) has waived two key eligibility conditions for all scheduled banks and financial companies to access its CMSME refinancing fund, effective immediately, as the central bank moves to deepen financing at the grassroots level and strengthen the sector's role in driving economic growth and employment.

The directive, issued on Sunday to the managing directors and chief executive officers of all scheduled banks and financial companies operating in Bangladesh, exempts all participating institutions from two conditions that were previously mandatory under clause 14.4.2 of the earlier circular - a maximum classified loan or investment ratio of 20 per cent, and the requirement to maintain capital adequacy, cash reserve ratio (CRR), and statutory liquidity ratio (SLR) at Bangladesh Bank-prescribed rates.

The relaxation is a direct follow-up to SMESPD Circular No. 01, issued on 17 March 2025.