Guidelines on Commercial Paper (CP) for Banks.
Commercial paper (CP) is a short term money-market instrument, which has an original maturity between a minimum of seven days and a maximum of one year, issued/sold usually by highly rated large companies. As an alternative to bank financing, it enables the issuers of CPs to diversify their sources of short-term borrowings and promotes competitiveness of the financial sector. In this context, it is desired that participants of the money market should practice a uniform procedure. Guidelines on Commercial Paper (CP) for Banks is hereby issued for this purpose.
This circular along with the guidelines is available on the website of Bangladesh Bank and shall come into force with an immediate effect.