Banks to device own strategy for interest rate cut

Staff Correspondent | Published: 22:38, Jun 27,2018 | Updated: 00:48, Jun 28,2018

 
 

Association of Bankers Bangladesh, a platform of top executives of banks, on Wednesday decided that individual bank would device its own mechanism to bring down the interest rate on lending to 9 per cent with effect from July 1.
The ABB took the decision at a meeting presided over by its chairman Syed Mahbubur Rahman, also the managing director and CEO of Dhaka Bank.
Mahbub told New Age that at the meeting all banks were conveyed the discussion on rate cut the ABB held on Monday with Bangladesh Bank.
‘We have decided that respective bank would device its own strategy to cut lending rate as per the decision of the bank sponsors,’ he said.
He said they would inform the central bank if any bank faced problem in implementing the decision and the central bank would try to solve the problem.
Earlier, on Monday, the ABB requested Bangladesh Bank to provide them with the government deposits at 5-6 per cent interest for implementing their decision to cut the interest rate on lending to 9 per cent from July.
When asked whether the average lending rate would be 9 per cent, Mahbub said that not all sectors but the sectors which would support economic growth would enjoy the rate cut.
‘We will prioritise the sectors which would support the economic growth and job creation for interest rate cut,’ he said.

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