Bangladesh Bank, the central bank of Bangladesh, has directed all scheduled banks in Bangladesh to ensure enough working capital loans for rawhide traders ahead of Eid-ul-Azha 2026. The move aims to support the country’s leather industry and prevent wastage of rawhides collected during the festival.

The central bank said the leather industry is an important sector for Bangladesh as it supports economic growth, creates jobs, earns foreign exchange and adds value to exports. It also said nearly half of the raw materials used by the industry every year come from sacrificial animal hides collected during Eid-ul-Azha.

Bangladesh Bank said proper financing for traders will help in the procurement, preservation and marketing of rawhides, which it described as a national resource.

Banks have been instructed to sanction and disburse working capital loans to eligible traders based on banker-customer relationships and existing banking rules.

The central bank also asked banks to ensure proper distribution of loans so that funds reach traders involved in rawhide collection at the grassroots level.

As part of a relaxation measure, Bangladesh Bank said traders with previously rescheduled loans will not need to repay the compromised amount until June 30, 2026, while taking fresh loans for rawhide purchases linked to this year’s Eid.

Banks have also been ordered to set loan disbursement targets for sacrificial animal hide purchases in 2026. The target cannot be lower than the target set for Eid-ul-Azha 2025.

Banks must submit their targets and actual loan disbursement data to the director of the Banking Regulation and Policy Department-1 of Bangladesh Bank by July 31, 2026. The directive was issued under Section 45 of the Bank Company Act, 1991.