Lending interest still high: BB Governor

Bangladesh Bank Governor Dr. Atiur Rahman on Thursday said interest rate on lending is still higher than the expected level though the interest on deposit is decreasing.

dr. atiurAtiur said “The sliding of interest rate on lending in recent times was not at that pace which the interest rate on deposit had has experienced. Still, some 13 banks are counting the interest rate on lending at over 14 percent”

He also expressed his shock over the fact that five banks are charging their agricultural loans at well over 11%.

He did however express slight satisfaction over the steady decrease in spread between interest rates of deposit and lending.

“At the end of January, the interest rate on lending stood at 12.32 percent and the spread has come to a point at 5.04 percent. I would repeat my call to fix the interest rate to a logical level and bring the spread to around 4 percent” he said.

The meeting was held at the central bank’s headquarters and was attended by managing directors and CEO of different private and public banks.

– Ittefaq Report