BB chief again urges banks to lower lending rates
Friday, 22 May 2009
FE Report
Bangladesh Bank Governor Atiur Rahman has again urged banks to reduce lending rates to help the business community.
"Most of the bank directors are businessmen and they will be also benefited from the reduced rate," he said at a meeting with Bankers Association of Bangladesh (BAB) in the central bank Thursday.
Many banks also charge higher 'service charge' which is not acceptable, he said to the bank directors.
The Governor asked them not to interfere in day-to-day activities of the banks.
"We have complaints that some directors are influencing regular activities of banks, which will ultimately deteriorate the governance situation," he said.
Terming the central bank 'referee', Dr Atiur said if anybody commits a foul he will be penalised.
The Governor asked the banks to diversify their lending portfolios and invest more in labour intensive projects.
The bank directors placed some demands before the Governor and sought his help to realise those.
The demands include reduction in corporate tax rate from 45 per cent, withdrawal of 1.0 per cent general provision on loans, lowering of the ceiling of statutory liquidity ratio (SLR) and cash reserve requirement (CRR), interest on CRR and inclusion of two BAB executive committee members in BB board of directors.
Deputy governors Nazrul Huda, Ziaul Hasan Siddiqui and Murshid Kuli Khan, Exim Bank Chairman Nazrul Islam Mazumder, Pubali Bank Chairman Hafiz Ahmed Mazumder, BRAC Bank Chairman Rumee Ali, City Bank Chairman Aziz Al Kaiser, National Credit and Commerce Bank Chairman Tofazzal Hossain and other chairmen and directors attended the meeting.
Bangladesh Bank Governor Atiur Rahman has again urged banks to reduce lending rates to help the business community.
"Most of the bank directors are businessmen and they will be also benefited from the reduced rate," he said at a meeting with Bankers Association of Bangladesh (BAB) in the central bank Thursday.
Many banks also charge higher 'service charge' which is not acceptable, he said to the bank directors.
The Governor asked them not to interfere in day-to-day activities of the banks.
"We have complaints that some directors are influencing regular activities of banks, which will ultimately deteriorate the governance situation," he said.
Terming the central bank 'referee', Dr Atiur said if anybody commits a foul he will be penalised.
The Governor asked the banks to diversify their lending portfolios and invest more in labour intensive projects.
The bank directors placed some demands before the Governor and sought his help to realise those.
The demands include reduction in corporate tax rate from 45 per cent, withdrawal of 1.0 per cent general provision on loans, lowering of the ceiling of statutory liquidity ratio (SLR) and cash reserve requirement (CRR), interest on CRR and inclusion of two BAB executive committee members in BB board of directors.
Deputy governors Nazrul Huda, Ziaul Hasan Siddiqui and Murshid Kuli Khan, Exim Bank Chairman Nazrul Islam Mazumder, Pubali Bank Chairman Hafiz Ahmed Mazumder, BRAC Bank Chairman Rumee Ali, City Bank Chairman Aziz Al Kaiser, National Credit and Commerce Bank Chairman Tofazzal Hossain and other chairmen and directors attended the meeting.