Dhaka, Bangladesh (BBN) - The Bangladesh Bank (BB) asked the commercial banks to keep interest rate spread at 5.0 per cent for credits to all areas of the economy barring credit card and small and medium enterprise (SME).
The central bank issued a directive in this connection on Sunday asked the commercial banks to comply with it properly.
“The central bank has taken the measure to stop irrational behaviour of the commercial banks while fixing their interested rates for these sectors,” a BB senior official told BBN in Dhaka.
Most of the commercial banks have already increased their lending rates on industrial loans and import financing of eight essential food items following withdrawal of cap on lending rate by the central bank.
On January 04 last, the BB withdrew the cap on lending rate for all sectors and items, barring only two -- agriculture and export -- to facilitate the country's overall economic growth through boosting investment in different fields.
BBN/SSR/AD-23Jan12-9:50 am (BST)