Staff Reporter :
The Bangladesh Bank (BB) has fixed maximum interest rate on deposits at 7 per cent and loans at 11 per cent for the non-banking financial institutions (NBFIs), effective from 1 July.
BB’s Department of Financial Institutions and Markets (DFIM) issued a circular in this regard Monday, sending it to the chief executives and managing directors of all financial institutions.
The circular further said that from first July, interest rates on all types of deposits and loans will not exceed the prescribed rates.
However, the interest rate on the deposit already taken will remain the same till the expiry of the term. BB came up with the latest move as the NBFIs were charging harsh interest rates of 15 to 18 per cent on lending.
“NBFIs are charging interest rates as they wish. Some financial institutions are charging 15 per cent to 18 per cent interest rates which are not compatible with the market. So, the central bank fixed the interest rate on deposits and loans at a reasonable level,” a BB official told The New Nation yesterday.
