Government borrowing from commercial banks has risen by 74% in the current financial year, driven largely by sluggish private sector credit growth and a strategic move to reduce its debt to the central bank under a contractionary monetary policy.
According to data from Bangladesh Bank, the government secured Tk78,832 crore from commercial banks through the issuance of Treasury bills and bonds between July and 20 February, compared to Tk45,231 crore in the same period the previous year.
Currently, the government's total outstanding borrowing from commercial banks amounts to Tk3.97 lakh crore.
The central bank has decided to ease the daily cash reserve ratio (CRR) requirement for commercial banks, providing them with some relief amid ongoing liquidity constraints, according to officials.
Under this decision, Bangladesh Bank (BB), the country's central bank, has reduced the daily CRR maintenance requirement by 50 basis points, lowering it from the current 3.50 per cent to...
Chief Adviser Dr Muhammad Yunus on Monday assured that Bangladesh Bank is fully prepared to ensure enhanced cash flow to banks across the country, enabling depositors to access their funds without hindrance.
“No bank has been closed, and even the weakest institutions have been stabilised,” he said in his Victory Day address to the nation.
Dr Yunus said that confidence and discipline are being steadily restored in the banking system, and announced that previous restrictions on cash withdrawals have been lifted, signalling a rob...
