The banks are still charging high interest on credit, although most of them have reduced their interest rate on deposit, ending the rat race for accumulating funds that began on July 1.
Economists yesterday said the central bank might not achieve its monetary policy targets for the current fiscal year due to the government's bank borrowing and politicised boards of state banks.
Entry of new banks will create an unhealthy competition in the industry, said former governor of the Bangladesh Bank.
Bangladesh Bank has been under pressure from politicians to give approval for at least 15 new banks, finance ministry officials say.
The central bank aims to cut credit growth in the private sector to 18 percent by June 30 from 25.5 percent and to rein in inflation, a monetary policy statement of the bank said.
BB Governor Dr Atiur Rahman Says, "Politicians and Social workers are the only critics of microcredit, not the subscribers" at a dialogue with economics experts.
The Bangladesh Bank has asked the non-banking financial institutions to double their paid-up capital Tk 100 crore by June 30 next year to help consolidate their capital base for minimising risks.
Most commercial banks slashed deposit rates this month simultaneously hiking their lending rates for consumer loans, officials said.
Merchant banks' role in the recent stock crash needs reassessment in the light of the jobs done by similar financial institutions in the developed markets, experts suggested.
Bangladesh Bank Governor Dr Atiur Rahman today said the central bank is contemplating easy access to bank loans for creative entrepreneurs in the IT and renewable energy sectors.
The board of directors of the central bank has opposed a government plan to allow more banks and financial institutions to come on the scene, saying the country does not require any new player in its financial regime.
The central bank has partly freed up foreign exchange transactions by approving online transfer of funds for academic purposes by credit card.
Bangladesh Bank (BB) today advised all private commercial banks (PCBs) to allow sick industries in apparel sector reschedule their outstanding loans with an 8 percent down payment.
The government has appointed M Abul Kashem as the fourth deputy governor of Bangladesh Bank, who was a former executive director of the central bank.
BB support to enhance base as per Basel II
The government has disbursed about Tk 11.39 billion to three state-owned commercial banks to enhance their capital base as per the Basel II requirement.
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