Bangladeshi commercial banks have started slashing their interest rates on deposit this month in line with the central bank’s latest interest rate policy.while interest rates on lending remained almost the same in the country’s banking sector.
Bangladesh Bank (BB), slashed its interest rate on repurchase agreement (repo) and reverse repo after nearly seven months aiming to offset the ongoing global financial recession through boosting fresh investment.
“Slashing interest rates on deposit by the commercial banks will encourage investment of fresh funds in different sectors that would also help offset the impact of ongoing global economic recession on the country’s economy” Analyst.
Market is now having more liquidity than the end of the last calendar year because of falling trend of import payments and export performances recently,” the chief executive officer of a private commercial bank said, adding that more banks might also cut their interest rates on deposit in the next months in line .
Meanwhile, only one commercial bank reduced its interest rates on lending this month, while two banks raised interest rates on lending for different sectors, the BB officials said.
The country’s commercial banks are now offering interests in the range between 5.25 per cent and 13.50 per cent on fixed deposit schemes, while the rates for saving accounts varies between 2.50 per cent and 8.00 per cent, according to the central bank statistics.
Currently, the banks provide loans to large and medium scale industries at interest rates ranging between 11 per cent and 15 per cent and to small industries between 10 per cent and 16.50 per cent.
Interest rates on housing loans range between 11.50 per cent and 16.00 per cent and consumer credits 10.50 per cent and 19.00 per cent.
The banks lending rates on working capital to large and medium scale industries range between 10.50 per cent and 16.00 per cent and for small industries between 10.50 per cent and 16.50 per cent, the BB data showed.
Bangladesh world banking :
The central bank of Bangladesh purchased $15 million more in U.S. dollars from two commercial banks on Tuesday to keep the inter-bank foreign exchange market stable.to help?Banks comply with the net open position (NOP) rules for holding the foreign currency fund properly.The central bank continues its intervention in the inter-bank foreign exchange through selling and buying of the U.S. currency directly and providing overdraft facilities to the banks.
-Back Story :
17th March, 2009 the BB similarly purchased $18 million from two private commercial banks on the same ground.
The central bank of Bangladesh started the intervention in the market by buying the U.S. currency directly from the commercial banks on Jan. 15. to keep the market steady.
Since then, the BB has bought $307.20 million from commercial banks as part of its intervention in the market, they confirmed.