Bangladesh Bank (BB) has finally offered incentives to good borrowers, as there has been an allegation that the central bank always stands by defaulters. The BB issued a circular in this regard on Thursday. “Borrowers having regular loan repayment records will be given 10 percent rebate on the interests in the 3^rd year of loan repayments,” said the circular asking the chief executives of all banks to take necessary steps in this regard. This rebate will continue in the following years if the borrowers continue to be ‘good borrowers’, the BB said. ...

The central bank has recently asked non-bank financial institutions to reduce their dependence on call money—a short-term bank loan repayable on demand. The directive has forced many non-banks to adjust their additional exposure, causing a fall in interest rate and a rise in transactions, reports the Daily Star. “We have been asked verbally to bring down our reliance on call money, which doesn’t generate any revenue for the government,” the chief executive of a non-bank said. A non-bank had a transaction ceiling of Tk 154 crore in the call money market, which...

The country’s private sector credit growth decreased in January from that of December as the businesspeople maintained a go-slow investment policy due to the ongoing political violence. According to Bangladesh Bank data released on Wednesday, the year-on-year credit growth rate in the private sector decreased to 13.33 per cent in January compared with that of 13.50 per cent in December 2014, reports the New Age. Credit flow to the private sector stood at Tk 5,41,881.90 crore as of January 201...