NBFIs too bring down lending rate at 9pc

Staff Correspondent | Published: 23:02, Jul 03,2018

 
 

A file photo shows the Bangladesh Bank headquarters at Motijheel in Dhaka.-- New Age

Non-bank financial institutions on Tuesday declared that they would reduce interest rate on lending to 9 per cent by two months, after the private commercial banks took such move.
The NBFIs will also bring down their deposit rate within 7 per cent.
A top leader of NBFIs’ association came up with announcement after they held a meeting with the central bank top officials at the BB headquarters with the BB governor Fazle Kabir in the chair.
IPDC Finance managing director and chief executive officer Mominul Islam, also an executive committee member of Bangladesh Leasing and Finance Companies Association, told reporters that they had completely agreed with the decision of the government high-ups to bring down the interest rate.
Manufacturing sector along with the manufacturing segment of small and medium enterprises, women entrepreneurs and export-oriented businesses would get priority in the first phase to get loans at single digit interest rate while rest of the sectors would get such loans gradually, said Mominul.
Bangladesh Leasing and Finance Companies Association chairman Md Khalilur Rahman and Bay Leasing and Investment Limited managing director Iftekhar Ali Khan were also present.
Earlier, banks announced to bring down lending rate to 9 per cent and three-month deposit rate to 6 per cent.
‘We have come to the central bank to seek policy support to implement the lower lending rate,’ Mominul said.
The central bank has given assurance that it would provide NBFIs every facility which would be required in this connection, he said.
‘For bringing down the interest rate to 9 per cent, we have also sought support from central bank so that the state-owned commercial banks deposit their funds to NBFIs at 6.5 per cent,’ said the BLFCA EC member.
‘For keeping the deposit collection environment congenial, NBFIs would keep deposit rate at 7 per cent and respective NBFIs would take decision through their boards very soon,’ he said.
He, however, said that nothing could be done in bringing down the interest rate of existing deposits as NBFIs had contracts with the clients in this regard.
Asked whether they emphasised on any specific issue in the meeting, he said that bond market was very much vital for ensuring terms financing which is yet to grow in the country.
‘The lending rate situation could be different if there was a matured bond market. For ensuring low cost funding for the financial institutions, we have urged central bank to issue guidelines from the central bank along with measures from Bangladesh Securities and Exchange Commission and National Board of Revenue,’ he said.

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