Banks asked to reduce interest rate, boost investment

Last updated: April 30, 2015

Dhaka, Bangladesh (BBN)-The central bank asked the commercial banks to boost investment in different productive sectors through reducing the interest rate on lending.
The Bangladesh Bank came with the directive during a bankers’ meeting held at the central bank on Thursday with Bangladesh Bank (BB) Governor Atiur Rahman in the chair.
The central bank also asked the other banks to stop gender harassment.
Different other issues including credit flow to the housing sector, rescheduling of loans and create a post for deputy managing director only for women in each bank were also discussed at the meeting.
The central bank has taken the latest move aiming to achieve maximum economic growth by the end of this fiscal through expediting credit flow to the productive sectors.
The weighted average rates on lending came down to 12.23 percent in February last from 12.32 percent in the previous month, according to the central bank statistics.
Meanwhile, the interest rates on deposit fell to 7.19 percent from 7.26, the BB data shows.
On the other hand, the weighted average spread between lending and deposit rates offered by the commercial banks came down to 5.04 in February 2015 from 5.06 percent in the previous month.

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