Bangladesh banking sector sees regulatory shifts and retail exits

Bangladesh Bank has introduced new regulations allowing offshore banking units (OBUs) to conduct cross-currency swaps and engage directly in the buying and selling of foreign currencies. This policy change is intended to provide OBUs with greater flexibility to manage liquidity, exchange-rate exposures, and foreign-currency funding. By tapping into cheaper or more readily available currencies, OBUs may be able to lower funding costs and offer more competitive financing for eligible trade and business transactions.

Separately, Standard Chartered Bank is seeking to wind down its retail banking and credit card business in Bangladesh. Local institutions, including BRAC Bank and City Bank, have reportedly expressed interest in acquiring these consumer services. Senior officials from Standard Chartered have met with the governor of Bangladesh Bank to discuss the potential transition. This move follows a broader strategic restructuring by the multinational bank, which has recently exited various local banking operations in other regions.