Dhaka: Bangladesh Bank (BB) has revised the reporting framework for the Net Stable Funding Ratio (NSFR) under the Basel III liquidity regime to align regulatory disclosures with the updated accounting treatment of central bank liquidity operations. The Supervisory Data Management and Analytics Department (SDAD) of the central bank issued a circular letter on Tuesday to managing directors and chief executive officers of banks, outlining the amendments.
According to United News of Bangladesh, the circular signed by SDAD Director Md. Abdul Mannan stated that the revised reporting template will take effect with the reporting period ending on June 30, 2026. The central bank explained that the review was necessitated by the revised Open Market Operations (OMO) guidelines issued on February 26, 2026 (DMD Circular No. 02). Under the updated OMO framework, liquidity management operations-including Central Bank Repo, Standing Lending Facility (SLF), and Islamic Banks Liquidity Facility (IBLF)-are now recognized as collateralized borrowings rather than outright sale transactions.
To ensure consistency and enhance the risk sensitivity of NSFR reporting, Bangladesh Bank has amended the guidance note with several key revisions. A new component titled “Collateralized Borrowing/Financing from Central Bank” has been added to explicitly capture Central Bank Repo, SLF, IBLF, Assured Repo, and similar borrowings. Interbank Repo transactions are now formally included under “Amount owed to financial institutions.”
Additionally, previous debt securities categories have been replaced by “Unencumbered Marketable Government and Central Bank Securities” and “Encumbered Marketable Government and Central Bank Securities,” which will be reported at amortized cost value for Held to Maturity (HTM) securities and market value for Held for Trading (HFT) securities. Reporting classifications for loans and deposits in other financial institutions have been updated to include transactions with finance companies in Bangladesh and banks and financial institutions outside Bangladesh.
Bangladesh Bank instructed all scheduled banks to prepare and submit their NSFR returns using the newly enclosed reporting template starting from the period ending June 30, 2026. The central bank clarified that all other provisions, reporting components, and instructions under the original NSFR guidelines issued via DOS Circular No. 01 dated January 01, 2015, remain unchanged and will continue to remain in force.