Economic Reporter :
Bangladesh Bank (BB) today extended the time by three months for banks to bring down their respective Advanced Deposit Ratio (ADR) or Investment Deposit Ratio (IDR) within the new limit declared on January 30.
“The banks will have to bring down ADR or IDR within the new limit by March 31, 2019 in stated of the previous deadline of December 31, 2018,” said a BB circular on Monday.
The banks, those ADR or IDR within the new limit, will have to follow the Asset-Liability Management (ALM) guidelines of the central bank at the time of giving new loans, the circular added.
BB also asked the banks to submit their work plans with April 30, 2018 for bringing down the ADR or IDR in the new limit, the circular added.
The circular also said banks will have to submit their development report in this regard within the first 10 days of every month.
Recently, BB reduced the limit of the ADR for banks to prevent their aggressive lending and ensure quality investments for the country’s development.
The BB has fixed the ADR limit to 89 per cent for the Shariah based Islamic banks and Islamic banking wings of the conventional banks from 90 per cent while 83.50 per cent for conventional banks from 85 per cent, according to a BB circular.
Bangladesh Bank (BB) today extended the time by three months for banks to bring down their respective Advanced Deposit Ratio (ADR) or Investment Deposit Ratio (IDR) within the new limit declared on January 30.
“The banks will have to bring down ADR or IDR within the new limit by March 31, 2019 in stated of the previous deadline of December 31, 2018,” said a BB circular on Monday.
The banks, those ADR or IDR within the new limit, will have to follow the Asset-Liability Management (ALM) guidelines of the central bank at the time of giving new loans, the circular added.
BB also asked the banks to submit their work plans with April 30, 2018 for bringing down the ADR or IDR in the new limit, the circular added.
The circular also said banks will have to submit their development report in this regard within the first 10 days of every month.
Recently, BB reduced the limit of the ADR for banks to prevent their aggressive lending and ensure quality investments for the country’s development.
The BB has fixed the ADR limit to 89 per cent for the Shariah based Islamic banks and Islamic banking wings of the conventional banks from 90 per cent while 83.50 per cent for conventional banks from 85 per cent, according to a BB circular.
