BB asks banks to implement interest cut decision

Staff Correspondent | Published: 00:05, Jun 22,2018

 
 

Bangladesh Bank on Thursday spurred bank owners to implement their decision to cut down interest rates by all banks from July 1.
A delegation of Bangladesh Association of Banks, headed by its president Nazrul Islam Majumder, met BB top brass, led by its governor Fazle Kabir, to inform the central bank about the BAB’s decision to cut the interest rates.
BAB sought the support of BB to bring down the lending rate to single digit from July 1.
On Wednesday, BAB decided to bring down the lending rate to single digit, 9 per cent, and deposit rate of three-month tenure to six percent from July 1.
BB governor advised the BAB leaders to properly implement the decision.
After the meeting BB adviser SK Sur Chowdhury told reporters that the central bank would send inspection teams to branches of different banks to monitor whether they were implementing the new interest rates from July 1.
Earlier in April, BB slashed cash reserve requirement or CRR of banks by one percentage point to 5.5 per cent for the benefit of private commercial banks.
Finance minister AMA Muhith has also proposed to reduce the corporate tax rate for banks and financial institutions (FIs) by 2.5 per cent in the budget for FY19.

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