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.Govt debt strategy reduces central bank borrowing by 40pc
Small loans boost Agent Banking growth in Bangladesh
Loan disbursements through agent banking saw a significant increase of 55.95 per cent year-on-year (Y-o-Y), reaching Taka 24,028.31 crore by the end of December 2024, driven by improved access to finance for rural populations, according to data from Bangladesh Bank (BB).
In December of the previous year, loan disbursements amounted to Taka 15,407.33 crore.As of December 2024, a total of 31 banks provided agent banking services through 21,248 outlets o...
