Interest spread exceeds 5pc

The spread between the interest rates on lending and deposit has again exceeded five-per cent mark. According to the latest central bank report on interest, the spread stood at 5.6 per cent at the end of February this year. The report shows the average interest on deposit stood at 8.34 per cent and the same on lending at 13.46 per cent. Bangladesh Bank (BB) has long been instructing the commercial banks to keep the spread below five per cent. Central bank’s Executive Director M Mahfuzur Rahman told bdnews24.com that the spread should be below five per cent in a country like Bangladesh.