Bangladesh Bank has increased the borrowing limit of the financial institutions from the inter-bank call money market.
The financial institutions will now be allowed to borrow maximum 40 percent of their equity from Sept 1 this year, according to a BB circular issued on Monday (Aug 5).
Now, the financial institutions are borrowing maximum 30 percent from the call money market.
The circular, who has been sent to the chiefs of the financial institutions, states that the equity will be fixed based on Dec 31, 2018 balance sheet.
The financial institutions will also prepare their accounts and fix equity based on Dec 31, it adds.