Kazi Zahidul Hasan :
The Bangladesh Bank (BB) has issued warnings to 22 commercial banks for their maintaining a higher spread between deposit and loans.
The BB sent the warning letters to the Chief Executive Officers and Managing Directors of the banks recently, officials said.
The banks are Agrani Bank, Woori Bank, AB Bank, The City Bank, the IFIC, the Pubali Bank, the Uttara Bank, the Dhaka Bank, the Eastern Bank, the Bank Asia, the Trust Bank, the NRB Commercial Bank , the Meghna Bank, the Modhumoti Bank, the City Bank NA, the HSBC, the One Bank, the Union Bank, NRB Bank, the BRAC Bank and the Standard Chartered Bank.
Among them, local commercial bank BRAC had been maintaining the highest spread
of 9.24 per cent followed by foreign bank Standard Chartered with 9.24 per cent, according to a BB figure as on May 30.
BRAC was collecting deposit at an average rate of 3.89 per cent of different maturities while their average lending rate was 13.27 per cent.
Similarly, Standard Chartered Bank was collecting deposit at a meager rate of 1.93 per cent while its lending rate was 9.24 per cent.
Expressing dissatisfaction at their high spread between deposit and loans, the central bank has asked them to bring down it (spread) to 5.0 per cent within the given time.
As per the BB rules, both local and foreign commercial banks must have to maintain a 5.0 per cent spread between their deposit and loans.
“We have issued warnings to the banks as they have been maintaining above 5.0 per cent spread violating BB rules,” Md Nowsad Ali Chowdhury, an Executive Director of BB told The New Nation on Friday.
The Bangladesh Bank (BB) has issued warnings to 22 commercial banks for their maintaining a higher spread between deposit and loans.
The BB sent the warning letters to the Chief Executive Officers and Managing Directors of the banks recently, officials said.
The banks are Agrani Bank, Woori Bank, AB Bank, The City Bank, the IFIC, the Pubali Bank, the Uttara Bank, the Dhaka Bank, the Eastern Bank, the Bank Asia, the Trust Bank, the NRB Commercial Bank , the Meghna Bank, the Modhumoti Bank, the City Bank NA, the HSBC, the One Bank, the Union Bank, NRB Bank, the BRAC Bank and the Standard Chartered Bank.
Among them, local commercial bank BRAC had been maintaining the highest spread
of 9.24 per cent followed by foreign bank Standard Chartered with 9.24 per cent, according to a BB figure as on May 30.
BRAC was collecting deposit at an average rate of 3.89 per cent of different maturities while their average lending rate was 13.27 per cent.
Similarly, Standard Chartered Bank was collecting deposit at a meager rate of 1.93 per cent while its lending rate was 9.24 per cent.
Expressing dissatisfaction at their high spread between deposit and loans, the central bank has asked them to bring down it (spread) to 5.0 per cent within the given time.
As per the BB rules, both local and foreign commercial banks must have to maintain a 5.0 per cent spread between their deposit and loans.
“We have issued warnings to the banks as they have been maintaining above 5.0 per cent spread violating BB rules,” Md Nowsad Ali Chowdhury, an Executive Director of BB told The New Nation on Friday.
