FY2026 budget proposal shifts credit card issuance decisions to commercial banks

Banks would gain greater flexibility in launching credit cards, though Bangladesh Bank regulations would remain fully applicable

The government has proposed transferring the authority to approve and launch new credit cards to the boards of commercial banks, removing the requirement for prior approval from Bangladesh Bank.

Finance Minister Amir Khosru Mahmud Chowdhury made the proposal during his budget speech on Thursday, saying banks would no longer require central bank approval before issuing credit cards.

Instead, they would be empowered to launch cards, design packages and set associated benefits with approval from their own boards of directors.

Currently, banks are required to obtain Bangladesh Bank approval after submitting details of the terms, conditions and benefits of any new credit card product before it can be introduced to the market.

If the proposal is approved, that requirement will be scrapped. However, banks will still have to comply with all existing Bangladesh Bank regulations governing credit cards.

Khosru presented a Tk 9.38 trillion budget, 19 percent larger than that of the ongoing fiscal year, with a projected deficit of Tk 2.43 trillion.