The Bangladesh Bank (BB) has amended key provisions of its directive on Offshore Banking Units (OBUs) of scheduled banks, in a move aimed at facilitating foreign trade and improving access to offshore financing.

The central bank issued a notification on Monday revising its OBU guidelines, originally published on 30 January 2025, to allow greater flexibility in extending trade finance facilities through Authorized Dealer (AD) banks.

Under the updated provisions, OBUs can now extend trade loans not only through their own bank’s AD branches but also via those of other banks, provided that a full risk assessment—covering counterparty exposure and credit limits—is carried out.

The official added that all offshore financing activities must adhere to the existing prudential credit norms and due diligence standards set by the regulator.

Previously, OBUs were restricted to offering trade finance through their own bank’s AD branches, in the form of buyer’s credit, accepted bill financing, and similar instruments, to enterprises in both specialized and non-specialized zones.

Officials stated that the new rules are expected to enhance banks’ capacity to facilitate cross-border trade transactions and enhance liquidity management within Bangladesh’s offshore banking framework.