Dhaka, Bangladesh (BBN) – The Association of Bankers, Bangladesh (ABB) on Tuesday asked its member banks to re-fix the interest rate on deposits at a maximum of 12.50 percent and fix the same on lending at a maximum of 15.50 per cent.
The new rates will come into effect from Wednesday.
The decisions were taken at an emergency meeting of the key bankers’ body, held in the capital Dhaka with its Chairman Nurul Amin in the chair.
“The ABB has taken the decisions aiming to ensure discipline in the country’s financial sector, particularly in the fixation of interest rates on both lending and deposits,” Mr. Amin told BBN, adding that the banks will implement the decisions to promote national interest.
“We hope that the banks will re-fix their lending rate upto a maximum of 15.50 percent for different sectors other than consumer credits, including credit card, and small and medium enterprises (SME) loans,” the ABB chairman noted.
The ABB has taken the latest moves against the backdrop of hikes in lending rates, following the recent withdrawal of the cap by the central bank.
The central bank withdrew the cap on lending rate for all sectors and items, barring only two — agriculture and export — on January 04 last to facilitate the country’s overall economic growth through investment-supportive activities in different fields.
BBN/SSR/SI-07Feb12-11:50 pm (BST)
