Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has asked the commercial banks to discourage credits to certain sectors including consumer financing, officials said.
The Bangladesh Bank (BB), the country’s central bank, has also re-fixed the margin ratios of various loans to discourage lending to ‘unproductive’ sectors.
Under the new regulations, the banks will have to maintain a 70:30 loan margin ratio, instead of the existing 80:20, in the housing finance. The ratio for the car loans and all other consumer financing will be 30:70 instead of the existing 50:50.
“The central bank has taken the latest measures to discourage financing in the less productive sectors,” a BB senior official said, adding that the restructuring of loan margin ratio would also help curb inflationary pressure on the economy.
The central bank issued a circular in this connection on Sunday and asked the chief executive officers and managing directors of all 47 scheduled banks to follow the restructured margin ratios while lending to these sectors.
BBN/SSR/AD-23Jan12-9:35 am (BST)
