DHAKA, May 24, 2026 (BSS) – Bangladesh Bank (BB) has relaxed several eligibility 
conditions for state-owned commercial and specialized banks to facilitate 
their participation in the Cottage, Micro, Small, 
and Medium Enterprise (CMSME) refinancing fund.

According to a circular issued today by the central bank’s SME and
Special Programs Department (SMESPD), the decision was taken to
strengthen the contribution of the CMSME sector to national economic
growth and support employment generation at the grassroots level.

The exemptions apply to conditions previously outlined in Section
14.4.2 of SMESPD Circular No. 01 dated March 17, 2025.

Under the revised directive, state-owned and specialized banks will no
longer be required to strictly maintain a classified loan or
investment ratio below 20 percent in order to qualify for the
refinancing facility.

The central bank has also exempted these banks from maintaining the
prescribed levels of capital adequacy, Cash Reserve Ratio (CRR), and
Statutory Liquidity Ratio (SLR) for participation in the CMSME
refinancing scheme.

Bangladesh Bank said the relaxed conditions will remain effective
until further notice. The instruction was issued under the authority
of Section 45 of the Bank Company Act, 1991 and has come into force
immediately.