Banking & Commodity

Banks’ overnight borrowing from the call money market almost doubled in the second half of the month of August compared with that in the first half of the month after the relaxation of Covid-centric restrictions and subsequent reopening of business and economic activities.

Bangladesh Bank has asked 10 banks to explain why they maintained a high interest rate spread for long depriving depositors.

The Bangladesh Small and Cottage Industries Corporation (BSCIC) has sought a Tk 1,000 crore stimulus package from the government to disburse loans for the development and expansion of the cottage industry and SMEs.

After buying a record amount of US dollars last year, Bangladesh Bank has begun selling the American greenback following a decline in remittance and an increase in imports.

Total non-performing loans increased to Tk98,164.31 crore as of June 30 this year — 8.61% of the sector’s total outstanding loans

The state-owned banks will focus on disbursing more loans in small and medium enterprises (SMEs) and cottage, micro, small and medium enterprises (CMSMEs), settling more money court cases to improve the investment capacity in productive sectors.

Essential commodities such as edible oil, wheat and sugar have become costlier in Bangladesh as their prices rose in the international markets because of the supply crunch and increased shipping costs, hitting the pocketbooks of consumers.

The 9 per cent and 6 per cent interest rates fixed respectively for lending and deposits have helped banks in improving their health, Finance Minister AHM Mustafa Kamal said yesterday.

Default loans in Bangladesh surged in the first half of 2021 as borrowers struggle to pay back due to the business slowdown caused by the coronavirus pandemic.

The central bank yesterday asked banks to raise their core capital ratio to 3.25 per cent in 2023 after they failed to put in place enough shareholders’ equity and reserves in line with international standards to absorb unexpected shocks.