Dhaka, Bangladesh (BBN)-The Bangladesh Bank (BB)’s high-powered committee is going to finalize its report within a couple of days with recommendations how to bring down the industrial lending rate to single-digit from the existing level.
Actually, the seven-member committee, headed by BB deputy governor S M Moniruzzaman, is now trying to explore different options to minimize possible adverse impact on the banking sector after slashing the interest rates on industrial loans.
Talking to the BBN, a member of the committee said they are now trying to explore different options for bringing down the lending rate on the industrial loans at single digit from the existing level.
The central bank has already collected the weighted average lending rates (WALR) on outstanding large industrial (manufacturing) loans along with outstanding cottage, micro, small and medium industrial (manufacturing) loans as of September 30, 2019 from the banks.
Besides, such information on large industrial (manufacturing) loans include credit to the readymade garment (RMG), textile, ship building and ship breaking, agro-based industry and other sectors was also collected from the banks.
The BB is now analyzing the information to know about real situation on the country’s banking sector after slashing interest rates on industrial loans.
“We expect that the report would be submitted to the BB governor by the end of this week,” he said while replying to a query.
Earlier on December 01, the central bank formed the high-powered committee to find out ways for bringing down the industrial lending rate to single-digit.
The committee has been asked to submit their report to the BB governor within seven working days.
After a meeting of the chairmen and managing directors of both public and private sector banks on December 01, Finance Minister A H M Mustafa Kamal told the reporters that the single-digit interest rate on such lending will come into effect from January 01, 2020.
The government had taken a move to bring down the lending rates to single digit to facilitate job creation and private investment in Bangladesh.