Staff Reporter :
Bangladesh Bank (BB) has reduced the cash reserve requirement by one-percentage point and the repo rate by 75 basis points for scheduled bank in a move to resolve the ongoing liquidity crisis in the banking sector.
BB issued two separate circulars in this regard on Tuesday.
Under the BB’s new rules, scheduled banks will have to maintain 5.50 per cent CRR (cash reserve requirement) with the central bank of their total demand and time deposit liabilities on a bi-weekly basis from the existing 6.50 per cent.
On the other hand, it also lowered the annual repo to 6 percent from 6.75 percent.
BB new rules will come into effect from April 15.
