Bangladesh Bank Headquarters

Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has asked the non-banking financial institutions (NBFIs) to fix the interest rates on deposits at reasonable level for ensuring stability in the financial sector.

The advice was made at a meeting with chief executives of 11 NBFIs held at the Bangladesh Bank (BB) headquarters in the capital on Thursday with BB Governor Fazle Kabir in the chair.

The BB’s latest moves came a day after Bangladesh Association of Banks (BAB) decision on bring down the interest rates on both lending and deposit at 9.0 per cent and 6.0 per cent respectively from July 01.

On Wednesday’s meeting, BAB chairman Nazrul Islam Mazumder said many insurance and leasing companies offer deposit rates of more than 12 per cent. “This must stop, otherwise, depositors will move to those companies.”

At the meeting, the managing directors (MDs) and chief executive officers (CEOs) of the leading NBFIs assured the central bank high-ups to follow the advice on fixation of interest rates on deposits.

The NBFIs are allowed to collect deposit from individuals and organisations for three months, which will not be allowed premature encashment.

Currently, 34 NBFIs are running their business across the country.