Produc

t
Family:

Treasury /
MoneyMarket/Re
po

Product
Requirement
s
Requirements

General
Characteristics
Brief Description

Volume of
transactions per
day/month
Procedure for
submission of
request with
Bangladesh
Bank

Clarifications

Repo is used only for maintaining the

liquidity ratio at central bank and also
for treasury operations. This is done in
LCY only. The counter parties are
Bangladesh Bank and other banks.
Securities bought by Bank from
Bangladesh Bank towards HFT (Held
for Trading) and HTM(Held for
Maturity) are eligible for REPO
transaction.
5 Transactions per day
The Treasury Bonds/Bills are available
with the Bank (Purchased through
Security Module). An enquiry is run to
get the eligible bonds/bills that are to
be sold for REPO purpose. A list is
prepared for the amount required and
the details of the bonds/bills that will
be sold to Bangladesh Bank. This is
sent alongwith a standard letter to
Bangladesh Bank. Bangladesh Bank
gives consent for the total amount or
it may reduce the quantum of amount
that can be given to the bank. Now
the original list will be revised and a
new list will be prepared.
Once the Bangladesh Bank accepts
the securities and release money to
NRB Commercial bank account.
Securities are to be transferred to
Bangladesh Bank through CDBL.

Valuation is to be
done by the system
for the different
bonds/bills as per
the rules given by
the NRB
Commercial bank
and shown in the
statement to
enable the Bank to
decide the
securities that will
be sold for REPO
Interface is to be
done with
Bangladesh Bank
and also with CDBL.

In case of repo transaction with other

banks, the tranfer of shares will be
done by bangladesh bank only. In this
case, the request will be sent to the
other bank and a copy will be sent to
Bangladesh Bank. Bonds that are
taken from other banks for REVERSE
REPO operations are NOT eligible for
selling through REPO
On maturity the Bills and Bonds will
be purchased by the NRB Commercial
Bank, at the rate at which the sale
was done. Transfer will be effected by
CDBL on the advice of Bangladesh
Bank.
Basic Product
Requirements
Calculation of
the market
value using
the present
REPO rate
inputted by
the user
Tenor - normal
contract
periods
Fixed Maturity,
Call, Overnight?
Rollover
requirements
Interest
Interest Rate
Type: Fixed Rate
or Floating Rate
If Floating, tied
to what type of
rates (LIBOR etc)
Interest Day
Basis (360/360,
etc) - give
details by
currency
Interest Accrual
Frequency Daily/Monthly

the market rate is calculated using

interpolation formula taking into
consideration of remaining days of the
bond and arriving at the rate of
interest for the remaining period of
bond.
Maximum 7 days. Period can be from
1 to 7 days.
Fixed Rate
NA

Fixed Rate
NA
Actual days/364

Daily/ on maturity

In T24, daily
accrual will happen.

Revaluation
Frequency

No revaluation.

Amortisation
Frequency

No amortisation

Interest
Capitalization
Requirements, if
any
Any tax
applicable on
interest and how
Tax is calculated
Other
Requirements
Charges or
Commissions

No

Any other tax

requirements
Archival
Requirements
Produc
t
Family:

In repo, the
securities are
actually sold to the
counterparty on the
deal date. As such,
there is no concept
of re-valuation
In repo, the
securities are
actually sold to the
counterparty on the
deal date. As such,
there is no concept
of re-valuation

No

CDBL (Central Depository for

Bangladesh Ltd) will charge
commission for their services
rendered, once in a year.
NA
5 year data is to be preserved as per
central bank guidelines.

Treasury /
MoneyMarket/Re
po

Process
Requirement
s
Business
Process
Deal
Processing

Activities

Roles

Initiation of the repo

Front office dealer

Confirmation of deal and accounting

Movement of securities through CDBL

(Central Depository of Bangladesh
(Ltd))
Deal slip preparation and
authorisation

Deal input will be

done by the front
office, while
accounting entries
will be raised at the
back office
Back office/Front
office
Deal slip will be
pepared by front
office and signed
by FO dealer
pass it on to the
back office.

Deal
Confirmation
Verify with counterparty's deal
confirmation . Record confirmation.
Exchange Deal confirmation with
Counterparty
Accounting
entries for
Repo

Back office
Back office

REPO

Repo agt. HFT Securities

Dr. Bangladesh Bank Account
Dr. Revaluation Reserve A/c
Cr.Treasury Bond/Bill A/c
Cr.P/L A/c
Cr. Coupon Interest A/c for T.Bond
on Maturity
Dr.Treasury Bond/Bill A/c
Dr. Coupon interst Expenditure A/c for
T.Bond
Dr. Repo interest Exp. A/c
Cr. Bangladesh Bank Account.

also follow
bangladesh bank
circular rearding
Repo as provided
by bank
* for buyer the
interest accural will
be stopped for the
Bonds
seller will also not
accure the interest.

Repo agt. HTM Securities

Dr. Bangladesh Bank Account
Dr. Reserve for HTM securities
Cr.Treasury Bond/Bill A/c
Cr.P/L A/c
Cr. Coupon Interest A/c for T.Bond
on Maturity
Dr.Treasury Bond/Bill A/c
Dr. Coupon interst Expenditure A/c for
T.Bond
Dr. Repo interest Exp. A/c
Cr.Bangladesh Bank Account.
other
require
ments

Reports and
Enquiries

Produc
t
Family:

Treasury /
MoneyMarket/Re
po

As provided by the Bank

Product
Requirement
s
Requirements

General
Characteristics
Brief Description

Volume of
transactions per
day/month

Repo is used only for maintaining the

liquidity ratio at central bank and also
for treasury operations also for
making profit.

Clarifications

Basic Product
Requirements
Tenor - normal
contract
periods
Fixed Maturity,
Call, Overnight?
Rollover
requirements
Interest
Interest Rate
Type: Fixed Rate
or Floating Rate

If Floating, tied
to what type of
rates (LIBOR etc)
Interest Day
Basis (360/360,
etc) - give
details by
currency
Interest Accrual
Frequency Daily/Monthly
Revaluation
Frequency
Amortisation
Frequency
Interest
Capitalization
Requirements, if
any
Any tax
applicable on
interest and how
Tax is calculated
Other
Requirements
Charges or
Commissions
Any other tax
requirements
Archival
Requirements
Produc

Treasury /

Normally for 2 / 1 days and max for

one week.
NA

Fixed Rate

NA
364/364

Daily/ on maturity
Weekly
Weekly for T-Bill and yearly for HTM
bills and bonds
No

No

NA
NA
Applicable

In T24, daily
accrual will happen.

t
Family:

MoneyMarket/Re
po

Process
Requirement
s
Business
Process

Activities

Roles

Initiation of the repo

Confirmation of deal and accounting
Movement of securities through CDBL

Front office dealer

Back office.
Back office/Front
office
Deal slip will be
pepared by front
office and signed
by FO dealer and
HO treasury

Deal
Processing

Deal slip preparation and

authorisation

Deal
Confirmation
Verify with counterparty's deal
confirmation . Record confirmation.
Exchange Deal confirmation with
Counterparty

Back office
Back office