Dhaka, Bangladesh (BBN)- Bangladesh’s private-sector credit growth felt in July after a continuous increase in last 10 months, said officials.
The private-sector credit growth came down to 15.97 per cent in July 2016 on a year-on-year basis from 16.78 per cent in June last, according to the Bangladesh Bank (BB)’s latest statistics.
Such credit growth had risen since September 2015 up till June 2016, the BB data showed.
“It’s a seasonal impact,” a BB senior official explained. “Preliminary data showed that the private-sector credit growth rebounded in the month of August 2016.”
Prolonged Eid vacation in July had also worked to push down such credit growth, he added.
However, the total outstanding loans with the private sector came down to BDT 6653.12 billion in July 2016 from BDT 6710.09 billion in June last. It was BDT 5736.69 billion in July 2015.
On the other hand, the overall excess liquidity with the commercial banks hit an all-time-high at BDT 1.30 trillion recently due to lower credit growth, particularly in the private sector.
The overall excess liquidity with all the banks stood at around BDT 1.30 trillion on July 14 last from BDT 1.20 trillion as on June 30.
Talking to BBN, a senior banker said the growth in credits to the private sector decreased following lower imports during the period under review. “Such credit growth was showing an upward trend in August again after a month’s interval.”
BBN/SSR/AD