Bankers have informed that they will provide bank loans to clients at 9% interest rate if they get deposits at 6% loan interest rate. These two things depend on each other.
Bangladesh Bank (BB) has declined the recommendation for double digit interest rate for loans to small and medium enterprises. Bangladesh Bank's Spokesman Sirajul Islam conveyed this information on Tuesday after a meeting with bankers.
Sirajul Islam further said that some financial institutions are going through perilous circumstances. Banks have been asked not to withdraw deposits altogether from financial institutions. Bangladesh Bank has also decided to adopt an austere approach to loan disbursement to stop loan frauds.
Newly elected Chairman of Bankers Association of Bangladesh (BAB) and Eastern Bank's Managing Director Ali Reza Iftekhar told reporters that the challenges being faced by banks have been illustrated to Bangladesh Bank in Tuesday's meeting.
Ali Reza Iftekhar added that the process of 2% down payment for loan repayment is being conducted on the basis of the relations between banks and customers.
It may be added that financial experts and economists have opposed the idea of providing 2% down payment facility to loan defaulters. Rather economists have urged the regulatory authorities to deal with mega defaulters firmly to recover defaulted loans.
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