The central bank has relaxed regulations for the state-owned commercial banks (SoCBs) to participate in green transformation fund (GTF), officials said.
Under the relaxation, the banks are now allowed to participate in the GTF without maintaining regulations regarding classified loans and capital shortfall, they added.
"We've relaxed such regulations to bring customers of the state-owned commercial banks in GTF," a senior official of the Bangladesh Bank (BB) told the FE, while replying to a query.
The central bank issued a circular in this connection on Sunday.
Under the existing provisions, participating banks need to maintain an acceptable level of non-performing loans of not more than 10 per cent.
No banks shall be eligible with shortfall in loan/investment provision, capital and liquidity, as per circular of the GTF issued in 2016.
Instructions of eligibility criteria of participating authorised dealer (AD) of private commercial banks and foreign commercial banks shall remain unchanged, according to the notification.
The central bank manages GTF with fund of US$ 200 million and EUR 200 million.
Participating banks can receive finance from the GTF against their lending to export oriented industries.
The fund is used to import capital machinery and accessories for implementing green or environment-friendly initiatives.
