BB allows banks to form start-up fund

Bangladesh Bank (BB) has amended its policy allowing all banks to form their own start-up fund with 1 percent of net profits instead of operating its earlier provision.

All the scheduled banks have been asked to keep 1 percent of their net profits for the next five years from current year for providing start-up entrepreneurs with loans, said a BB circular issued on Monday.

Formation of the start-up fund will start with 1 percent of net profits on the basis of the December’s financial statement for 2020, it added.

Earlier on March 29, the central bank formed a refinancing fund amounting to Taka 5 billion aiming to help startups expand and flourish in Bangladesh.