BB slashes loan provisioning rates to boost agricultural, CMSME lending | Business

DHAKA, Oct 13, 2025 (BSS) - Bangladesh Bank (BB) has issued a directive significantly reducing the required loan provisioning rates for banks handling specific credit lines in the agricultural and CMSME sectors, aiming to encourage greater participation by banks in disbursing these credits. To this end, the central bank today issued a circular, instructing all banks to maintain provision at the rate of 1 percent against all unclassified standard and Special Mention Account (SMA) Short Term Agricultural Credits and Cottage, Micro and Small (CMS) enterprise credits under CMSME sector till 31 December 2026. All other instructions...