Business Desk :
Non-bank financial institutions (NBFIs) will no longer be allowed to take out loans against depositors’ funds kept in the form of treasury bills, bonds and fixed deposits as statutory liquidity ratio (SLR).
Banks and NBFIs need to invest 3.5% of their term deposits in government securities to maintain SLR.
The Bangladesh Bank in a circular issued on Monday directed NBFIs to refrain from taking loans against provisioned money maintained as protection for term deposits.
Seeking anonymity, a central bank official said SLR is meant for giving protection to depositors. Such money should be invested in financial tools from where encashment is possible whenever it is necessary.
