BB working to scrap interest rate ceiling

The Bangladesh Bank has taken an initiative to scrap the 9 per cent interest rate ceiling and introduce a market-based interest rate on loans. “We are working on the development of a market-based reference rate. On top of that, we will be giving a corridor for the lending rates,” said Bangladesh Bank Governor Abdur Rouf Talukder yesterday. He came up with the remarks on the second day of the Bangladesh Business Summit at the Bangabandhu International Conference Center in the capital. The Federation of the Bangladesh Chambers of Commerce and Industry organised the three-day event in cooperation with the foreign and commerce ministries and the Bangladesh Investment Development Authority. Contacted, a BB official explained the governor’s comment, saying that the central bank might initially set a reference rate on loans based on the demand for credit from borrowers.

Source: https://www.thedailystar.net/business/economy/news/bb-working-scrap-interest-rate-ceiling-3269671

Bank deposits grow 6.14% YoY in January

Deposits in the country’s banking sector grew by 6.14% year-on-year in January compared to 5.44% in the previous month. At the same time, lending grew by 7 basis points. The year-on-year growth of loans in January was 13.89%, compared to 13.82% in December last year. According to data from the central bank, deposits in the banking sector have increased by Tk86,000 crore in one year through January, while lending has increased by Tk1.72 lakh crore. In other words, deposits have not increased at the same pace as bank loans have. A month-wise analysis showed that in January, banks lent out more money than they received in deposits, which economists say could potentially lead to a liquidity crunch if not managed carefully. According to data from the Bangladesh Bank, deposits in the country’s banking sector fell by Tk1,398 crore in January compared to the previous month.

Source: https://www.tbsnews.net/economy/banking/bank-deposits-grow-614-yoy-january-598598

ECNEC approves eight projects with Tk 121.67 billion

The Executive Committee of the National Economic Council (ECNEC) has approved a Tk 43.23 billion Resilient Infrastructure for Adaptation and Vulnerability Reduction Project (RIVER) in a bid to reduce flood risks of the sudden flood-prone communities and people living along the river banks. The approval came from a meeting of the ECNEC, with its Chairperson and Prime Minister Sheikh Hasina in the chair, held at the NEC Conference Room at Sher-e-Bangla Nagar area in Dhaka on Sunday. Briefing reporters after the meeting, State Minister for Planning Dr Shamsul Alam informed that the day’s meeting approved a total of eight projects with an overall estimated cost of Tk 121.67 billion, reports BSS. “Of the total project cost, Tk 30.97 billion will come from the Government of Bangladesh (GoB) portion, Tk 1.56 billion from the concerned organisation’s own fund while the lion share of Tk 89.12 billion from project assistance,” he added.

Source: https://thefinancialexpress.com.bd/economy/bangladesh/ecnec-approves-eight-projects-with-tk-12167-billion