Dhaka, Bangladesh (BBN)- The central bank of Bangladesh has allowed net inter-bank surplus deposit for calculating credit-deposit ratio (CDR) of the commercial banks, officials said.
Under the new provisions, the net inter-bank surplus deposit will be determined by detecting deposit with other banks from deposit from other banks.
Bangladesh Bank (BB), the country’s central bank, issued a directive in this connection on Monday and asked the chief executives and managing directors of all scheduled banks to follow the new provisions for calculation of their CDR.
The central bank also introduced a new financial model to determine the available fund positions of the banks.
“The banks will be able to comply with the existing CDR level, set by the central bank earlier, using the latest financial model,” a BB senior official said, adding that the CDR would decrease around 2.0 per cent after implementation of the new calculation system.
On February 20 last, the BB has set June 30 as deadline for bringing down the CDR of the commercial banks to a reasonable level.
Under the directive, 19 conventional commercial banks will have to bring down their CDR to 85 per cent, while five Shariah-based Islamic banks to 90 per cent by June 30 this year.
BBN/SSR/AD-28June11-9:43 pm (BST)
