The Bangladesh Bank has clarified that commercial banks will not bear any financial liability in the case of contract-based imports, in a move aimed at streamlining import procedures and encouraging greater engagement from banks.
In a circular issued on Tuesday, the central bank said importers should not be restricted from executing import transactions solely on the basis of sales contracts.
The directive comes in response to banks’ longstanding reluctance to handle such transactions, stemming from the misconception that contract-based imports placed the financial burden on them.
The circular explicitly clarifies that banks will be responsible only for managing payment procedures using funds provided by the importers themselves and thereby absolving them of any financial risk.
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Insiders see this clarification as a major policy shift, correcting confusion caused by a 2022 circular that led banks to reject contract-based import payments and disrupted import flows.
Industry stakeholders believe the latest move will bolster confidence among banks, simplify import operations, and facilitate a smoother flow of foreign trade.
“This is a timely decision. By clearly stating that banks have no financial liability, it will help reduce import costs and foster a more conducive business environment,” said one importer.