Bangladesh Bank has lowered the borrowing limit of the non-bank financial institutions from the inter-bank call money market.
The BB on Sunday in a circular reset the calculation method of the borrowing limit of the NBFIs to equity-based instead of the net asset-based.
The NBFIs will be allowed to borrow up to an amount equivalent to 30 per cent of their fixed equity from the inter-bank call money market from February 1.
The NBFIs now can borrow maximum 15 per cent of their net asset from the inter-bank call money market.
A BB official told New Age on Monday that the NBFIs’ scope of taking
loans from the call money market would be decreased when they would borrow in line with their equity position.
The NBFIs has recently become dependent on the call money market to meet up their short-term cash demand as the weighted average interest rate on the call money market is now ranging between 3.50 per cent and 3.60 per cent.
The latest central bank’s move will force the NBFIs to take short-term deposit from the clients, the BB official observed.
Currently, 33 NBFIs are operating business in the country.
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