Bangladesh Bank (BB) has revised the reporting framework for 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 the circular signed by SDAD Director Md. Abdul Mannan, the revised reporting template comes into effect with the reporting period ending June 30, 2026.
Key Revisions to the NSFR Framework
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 as follows:
Collateralized Borrowing from Central Bank: A new component titled "Collateralized Borrowing/Financing from Central Bank" has been added under Serial No. 7 to explicitly capture Central Bank Repo, SLF, IBLF, Assured Repo, and similar borrowings.
Interbank Repo: Interbank Repo transactions are now formally included under Serial No. 6 ("Amount owed to financial institutions").
Government and Central Bank Securities: Previous debt securities categories (Serial Nos. 12 and 13) have been replaced by "Unencumbered Marketable Government and Central Bank Securities" (Serial No. 13) and "Encumbered Marketable Government and Central Bank Securities" (Serial No. 14). These will be reported at amortized cost value for Held to Maturity (HTM) securities and market value for Held for Trading (HFT) securities.
Exposures to Finance Companies and Foreign FIs: Reporting classifications for loans and deposits in other financial institutions have been updated to "Loans/Investments to, and deposits in, other Finance Companies in Bangladesh" (Serial No. 22) and "Loans/Investments to, and deposits in, Banks and other Financial Institutions outside Bangladesh" (Serial No. 23).
Implementation Instructions
Bangladesh Bank instructed all scheduled banks to prepare and submit their NSFR returns using the newly enclosed reporting template (Annexure-I) starting from the period ended 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.