Capital requirement for new banks hiked to Tk500cr

The Bangladesh Bank has increased the required paid-up capital for new commercial banks by Tk 100 crore.

From now on, new commercial banks must ensure Tk 500 crore as paid-up capital, which was Tk 400 crore, the central bank announced in a circular issued on Thursday.

The limit will be only applicable to banks that will apply for licences for opening new bank companies, according to BB officials.

Existing banks will not fall under its purview.

They said many banks could not raise their capital base immediately like the state ones, which are struggling to manage their required capital for a long time.

Meanwhile, the Bangladesh Bank also set a paid-up capital requirement of Tk 125 crore for digital banks.

The Bangladesh Bank board approved the guidelines for the digital bank on Wednesday.

Digital banks would not need huge infrastructures like the traditional ones. Hence, the required paid-up capital for them is lower.