Bangladesh’s interest rates remain stable in September
Dhaka, Bangladesh (BBN) – Bank interest rates, both lending and deposit, remained almost stable in the month of September, following the uniform policy on deposit rate, introduced by two professional bodies relating to banking businesses.
“The existing trend about interest rate is good for the financial sector. It may facilitate investment, particularly in the productive sectors in the near future,” a senior official of the Bangladesh Bank (BB) told BBN, adding that the central bank has strengthened its monitoring and supervision to keep the interest rate structure of banks, stable.
In June last, two professional bodies — Bangladesh Association of Banks (BAB) and Association of Bankers, Bangladesh (ABB) — decided to follow a uniform policy on deposit rate.
The associations have asked the private banks to cap deposit rate at 12 per cent — a move aimed at curbing a growing practice then among some banks to mobilize fresh deposits in a bid to ease their liquidity pressure.
At least two commercial banks increased their lending rates in September last while an equal number of banks raised their deposit rates aiming to slash their cost of funds.
Deposit rate remained unchanged at a maximum of 12.78 per cent on fixed deposits in August last while the interest rate on savings accounts range between 1.00 per cent and 12 per cent, according to the central bank statistics.
Currently, the banks provide loans to large and medium-scale industrial plants at lending rates ranging between 11.50 per cent and 13.00 per cent and to small industries, between 10.50 per cent and 18.00 per cent.
Lending rates on housing loans now range between 10.00 per cent and 18.00 per cent and consumer credits, between 13.00 per cent and 19.50 per cent.
The lending rates on working capital to large and medium scale industries vary between 9.00 per cent and 17.00 per cent and for small industries, between 11.50 per cent and 18.00 per cent.