Banks asked to finance in cars not older than five years

Dhaka, Bangladesh (BBN) – The central bank of Bangladesh on Wednesday amended regulations for consumer financing with slashing tenure of reconditioned cars by one year aiming to protect environment.

Under the amended regulations, the commercial banks will be allowed to finance the cars older than five years instead of six years.

“We’ve amended the prudential regulations for consumer financing in line with the existing import policy,” a senior official of the Bangladesh Bank (BB) said, adding that it would also help ease traffic congestions.

‘‘The banks desirous of financing the purchase of used cars shall prepare uniform guidelines for determining value of the used vehicles. However, in no case the bank shall finance the cars older than five years,” the central bank said in a circular, issued Wednesday.

BBN/SSR/AD-03Nov10-11:03 pm (BST) 

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