Banks asked to support rawhide traders ahead of Eid-ul-Azha

Bangladesh Bank has instructed all scheduled banks to ensure an adequate flow of working capital loans to rawhide traders ahead of the upcoming Eid-ul-Azha, aiming to support the country’s leather sector and prevent wastage of a key export-oriented resource.

The central bank issued a circular in this regard today, stating that the leather industry is a promising sector for Bangladesh, contributing to economic growth, employment generation, foreign exchange earnings, and value addition.

Nearly half of the raw materials used in the industry throughout the year come from the hides of sacrificial animals collected during Eid-ul-Azha, it added.

Given the approaching festival in 2026, the BB said sufficient financing for traders will play a crucial role in the procurement, preservation, and marketing of rawhides, which are considered a national resource.

To this end, banks have been directed to sanction and disburse working capital loans to eligible traders based on banker-customer relationships and in compliance with existing regulations.

They have also been asked to ensure proper distribution of allocated loans, particularly so that funds reach those engaged in rawhide collection at the grassroots level.

As a relaxation measure, the central bank said that if traders have previously rescheduled loans, banks will not be required to realise the compromised amount against such loans until June 30, 2026, when extending fresh credit for rawhide purchases related to this year’s Eid.

Furthermore, banks have been instructed to set disbursement targets for loans aimed at purchasing sacrificial animal hides in 2026. The target must not be lower than the one set for Eid-ul-Azha in 2025.

Banks are required to submit data on their targets and actual loan disbursement to the director of the Banking Regulation and Policy Department-1 of Bangladesh Bank by July 31, 2026, following a prescribed format.

The directive has been issued under Section 45 of the Bank Company Act, 1991.