Dhaka, Bangladesh (BBN) - The central bank has imposed restrictions on purchase or lease of fixed assets, including land, by commercial banks, officials said.
Under the new provisions, a bank cannot buy land, building or floor space, except for the use of its headquarters. Besides, fixed assets cannot be taken as lease for more than 10 years.
The Bangladesh Bank (BB) issued a circular in this connection on Monday and asked the commercial banks to maintain the intrusions properly.
The banks are allowed to buy or lease floor space for its branches provided that it has approval from the BB.
Different commercial banks have invested heavily in fixed assets which pushed up its prices significantly in the past few years.
Earlier in 2010, Bangladesh Bank asked banks to stop financing for land purchase as an increased flow of credit to the unproductive sector is adversely affecting the economy.
BBN/SSR/AD-31July12-12:29 am (BST)
