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Bangladesh's central bank to expand deposit insurance coverage to nonbanks

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Bangladesh's central bank to expand deposit insurance coverage to nonbanks

Bangladesh's central bank proposed expanding deposit insurance coverage to depositors at nonbank financial institutions amid the increasing use of leasing companies as depository institutions, The Daily Star reported March 18.

Bangladesh Bank proposed amending the Bank Deposit Insurance Act of 2000 to include depositors of nonbanks under its coverage. Currently, only bank depositors are insured under the act.

According to the proposed amendment, depositors at nonbank financial institutions will get insurance coverage for up to 100,000 taka if the company is liquidated.

The central bank proposed the changes as deposits at such institutions in the country have increased. According to central bank data, deposits in the country's 29 nonbank financial institutions stood at 467.97 billion taka as of December 2017.

As of March 16, US$1 was equivalent to 83.02 Bangladeshi taka.