Bangladesh Bank (BB) has revised the reporting framework for the Net Stable Funding Ratio (NSFR) under the Basel III liquidity regime, introducing changes to align regulatory reporting with the updated accounting treatment of central bank liquidity facilities. The Supervisory Data Management and Analytics Department (SDAD) issued a circular today, amending the reporting requirements originally introduced under DOS Circular No. 01 dated January 1, 2015.
The revision follows the issuance of DMD Circular No. 02 dated February 26, 2026, which updated the guidelines for Open Market Operations (OMOs). Under the revised framework, liquidity facilities such as Central Bank Repo (CB Repo), Standing Lending Facility (SLF), Islamic Banks Liquidity Facility (IBLF), Assured Repo and similar instruments will be reported as collateralized borrowings instead of outright sale transactions.
According to the circular, the NSFR guidance note has been updated by adding a new reporting category for collateralized borrowing or financing from the central bank. The section covering liabilities to financial institutions has also been expanded to explicitly include interbank repo transactions. The central bank has replaced previous debt securities categories with separate classifications for unencumbered and encumbered marketable government and Bangladesh Bank securities.
These securities will be valued at amortized cost when held to maturity (HTM) and at market value when held for trading (HFT). Reporting categories relating to finance companies and foreign financial institutions have been revised to distinguish between finance companies operating in Bangladesh and banks and other financial institutions outside Bangladesh.
The revised reporting template restructures liabilities, loans, securities, investments and other assets to improve transparency and eliminate double counting. A new category has been introduced for collateralized borrowings from the central bank, while separate reporting requirements have been specified for residential mortgages, government securities, interbank exposures and off-balance-sheet commitments.
Banks will continue to report assets and liabilities under three residual maturity buckets: less than six months, six months to less than one year, and one year or more. Under Basel III, the Net Stable Funding Ratio (NSFR) is calculated by dividing Available Stable Funding (ASF) by Required Stable Funding (RSF) to ensure banks maintain sufficient stable funding over a one-year horizon.
Bangladesh Bank said the revised reporting format will take effect from the reporting period ending June 30, 2026, while all other provisions of DOS Circular No. 01 of 2015 will remain unchanged. All scheduled banks have been instructed to adopt the updated reporting template from the June 2026 reporting cycle onward. The changes aim to enhance the accuracy and transparency of liquidity reporting in Bangladesh, ensuring better compliance with international banking standards.
