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Back to square one

It’s deja vu all over again. On June 21, 2018, Bangladesh Association of Bankers (BAB), a platform of private banks’ owners, agreed to cap the interest rate on deposits at 6 percent and the lending rate at 9 percent from July 1, 2018.

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Banking stocks battered

Banking stocks took a punch yesterday as investors reacted violently with the government move to fix the interest rates for lending and savings at 9 percent and 6 percent respectively, effectively clipping the lenders’ ability to log in profits.

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